Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



	39

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of Alliant Energy Corporation:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Alliant Energy Corporation and subsidiaries (the “Company”) as of December 31, 2019 and 2018, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2020, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Assets and Regulatory Liabilities - Impact of rate regulation on the financial statements - Refer to Notes 1 and 2 to the financial statements

Critical Audit Matter Description

Alliant Energy Corporation, through its wholly owned subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company (collectively, the “Company”) is subject to rate regulation by the Federal Energy Regulatory Commission and the respective state commissions in Iowa and Wisconsin (collectively, the “regulatory agencies”). Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the Regulated Operations Topic 980 of the Financial Accounting Standards Board’s Accounting Standards Codification. As of December 31, 2019, the Company had a recorded consolidated regulatory assets balance of $1,844.7 million and regulatory liabilities balance of $1,423.6 million.



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The Company’s rates are subject to regulatory rate-setting processes and annual earnings oversight. The regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Regulatory assets represent incurred costs that have been deferred and are probable of recovery in future customer rates. Regulatory liabilities represent obligations to make refunds to customers or amounts collected in rates for which the costs have not yet been incurred. The Company’s regulatory assets and regulatory liabilities are recognized in accordance with the rulings of the regulatory agencies. A change in these rulings may result in a material impact on results of operations and the amount of assets and liabilities in the financial statements. Future regulatory rulings may impact the carrying value and accounting treatment of the regulatory assets and regulatory liabilities.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of the recovery of incurred costs and refund of obligations to customers in future rates. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the regulatory agencies, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate-setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the regulatory filings by management and the uncertainty of future decisions by the regulatory agencies included the following, among others:


•	We tested the design and operating effectiveness of management’s controls over the evaluation of regulatory assets and liabilities, including the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.


•	We inspected the Company’s analysis supporting the probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess the reasonability of management’s assertions.


•	We inquired of management regarding current events impacting the Company and inspected minutes of the board of directors and other committees of the Company and evaluated whether matters were identified that may have an impact on recorded regulatory asset and liability balances.


•	We read relevant regulatory orders, regulatory statutes, interpretations, procedural memorandums, filings made by interveners, and other publicly available information issued by the regulatory agencies that pertain to the Company as well as to other relevant public utilities. We evaluated the external information and assessed whether there were matters in such information that would be contradictory to the assessment of recovery of the Company’s regulatory assets or refund of regulatory liabilities.

•

We read relevant regulatory orders, regulatory statutes, interpretations, procedural memorandums, filings made by interveners, and other publicly available information issued by the regulatory agencies that pertain to the Company as well as to other relevant public utilities. We evaluated the external information and assessed whether there were matters in such information that would be contradictory to the assessment of recovery of the Company’s regulatory assets or refund of regulatory liabilities.


•	We obtained representation letters from management as well as legal letters from internal and external legal counsel and evaluated such letters to assess whether information was present that would be relevant to the assessment of recovery of the Company’s regulatory assets or refund of regulatory liabilities.


•	We evaluated the Company’s disclosures related to the impacts of rate regulation and regulatory developments, including disclosures related to the regulatory balances recorded.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 21, 2020

We have served as the Company’s auditor since 2002.



	41

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2019			2018			2017
	(in millions, except per share amounts)
Revenues:
Electric utility		$3,063.6			$3,000.3			$2,894.7
Gas utility	455.2			446.6			400.9
Other utility	46.5			48.0			47.5
Non-utility	82.4			39.6			39.1
Total revenues	3,647.7			3,534.5			3,382.2
Operating expenses:
Electric production fuel and purchased power	776.7			855.0			818.1
Electric transmission service	481.4			495.7			480.9
Cost of gas sold	221.7			232.3			211.4
Other operation and maintenance	712.2			645.8			633.2
Depreciation and amortization	567.2			506.9			461.8
Taxes other than income taxes	110.8			104.4			105.6
Total operating expenses	2,870.0			2,840.1			2,711.0
Operating income	777.7			694.4			671.2
Other (income) and deductions:
Interest expense	272.9			247.0			215.6
Equity income from unconsolidated investments, net	(53.0		)	(54.6		)	(44.8		)
Allowance for funds used during construction	(92.7		)	(75.6		)	(49.7		)
Other	14.4			7.6			17.3
Total other (income) and deductions	141.6			124.4			138.4
Income from continuing operations before income taxes	636.1			570.0			532.8
Income taxes	68.7			47.7			66.7
Income from continuing operations, net of tax	567.4			522.3			466.1
Income from discontinued operations, net of tax	—			—			1.4
Net income	567.4			522.3			467.5
Preferred dividend requirements of Interstate Power and Light Company	10.2			10.2			10.2
Net income attributable to Alliant Energy common shareowners		$557.2			$512.1			$457.3
Weighted average number of common shares outstanding:
Basic	238.5			233.6			229.7
Diluted	239.0			233.6			229.7
Earnings per weighted average common share attributable to Alliant Energy common shareowners:
Basic		$2.34			$2.19			$1.99
Diluted		$2.33			$2.19			$1.99
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax		$557.2			$512.1			$455.9
Income from discontinued operations, net of tax	—			—			1.4
Net income		$557.2			$512.1			$457.3

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	42

ALLIANT ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS



	December 31,
	2019		2018
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$16.3		$20.9
Accounts receivable, less allowance for doubtful accounts	402.1		350.4
Production fuel, at weighted average cost	77.7		61.4
Gas stored underground, at weighted average cost	49.1		49.0
Materials and supplies, at weighted average cost	100.5		101.4
Regulatory assets	86.4		79.8
Prepaid gross receipts tax	41.7		42.2
Other	101.7		80.0
Total current assets	875.5		785.1
Property, plant and equipment, net	13,527.1		12,462.4
Investments:
ATC Holdings	320.1		293.6
Other	147.7		137.7
Total investments	467.8		431.3
Other assets:
Regulatory assets	1,758.3		1,657.5
Deferred charges and other	72.0		89.7
Total other assets	1,830.3		1,747.2
Total assets		$16,700.7		$15,426.0



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$657.2			$256.5
Commercial paper	337.4			441.2
Accounts payable	422.3			543.3
Regulatory liabilities	212.0			142.7
Other	425.2			260.4
Total current liabilities	2,054.1			1,644.1
Long-term debt, net (excluding current portion)	5,533.0			5,246.3
Other liabilities:
Deferred tax liabilities	1,714.0			1,603.1
Regulatory liabilities	1,211.6			1,350.5
Pension and other benefit obligations	484.0			509.1
Other	298.9			287.2
Total other liabilities	3,708.5			3,749.9
Commitments and contingencies (Note 17)
Equity:
Alliant Energy Corporation common equity:
Common stock - $0.01 par value - 480,000,000 shares authorized; 245,022,800 and 236,063,279 shares outstanding	2.5			2.4
Additional paid-in capital	2,445.9			2,045.5
Retained earnings	2,765.4			2,545.9
Accumulated other comprehensive income	1.3			1.7
Shares in deferred compensation trust - 381,232 and 384,580 shares at a weighted average cost of $26.24 and $25.60 per share	(10.0		)	(9.8		)
Total Alliant Energy Corporation common equity	5,205.1			4,585.7
Cumulative preferred stock of Interstate Power and Light Company	200.0			200.0
Total equity	5,405.1			4,785.7
Total liabilities and equity		$16,700.7			$15,426.0

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	43

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2019			2018			2017
	(in millions)
Cash flows from operating activities:
Net income		$567.4			$522.3			$467.5
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	567.2			506.9			461.8
Deferred tax expense and tax credits	55.6			67.0			139.6
Equity component of allowance for funds used during construction	(65.5		)	(51.4		)	(33.6		)
Other	19.9			7.7			21.7
Other changes in assets and liabilities:
Accounts receivable	(471.7		)	(475.4		)	(441.2		)
Regulatory assets	(16.2		)	(16.2		)	(130.8		)
Regulatory liabilities	(40.3		)	1.3			(83.8		)
Deferred income taxes	53.8			55.9			81.7
Other	(9.8		)	(90.4		)	38.7
Net cash flows from operating activities	660.4			527.7			521.6
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business	(1,538.4		)	(1,568.3		)	(1,281.8		)
Other	(101.7		)	(65.6		)	(185.1		)
Cash receipts on sold receivables	413.2			605.3			461.8
Other	(60.4		)	(38.2		)	(28.3		)
Net cash flows used for investing activities	(1,287.3		)	(1,066.8		)	(1,033.4		)
Cash flows from financing activities:
Common stock dividends	(337.7		)	(312.2		)	(288.3		)
Proceeds from issuance of common stock, net	390.3			196.6			149.6
Proceeds from issuance of long-term debt	950.0			1,500.0			550.0
Payments to retire long-term debt	(256.5		)	(855.7		)	(4.6		)
Net change in commercial paper and other short-term borrowings	(103.8		)	26.0			171.1
Other	(23.2		)	(24.0		)	(45.2		)
Net cash flows from financing activities	619.1			530.7			532.6
Net increase (decrease) in cash, cash equivalents and restricted cash	(7.8		)	(8.4		)	20.8
Cash, cash equivalents and restricted cash at beginning of period	25.5			33.9			13.1
Cash, cash equivalents and restricted cash at end of period		$17.7			$25.5			$33.9
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest		($267.9	)		($247.5	)		($212.6	)
Income taxes, net		$20.5			($5.0	)		($11.3	)
Significant non-cash investing and financing activities:
Accrued capital expenditures		$195.8			$299.5			$196.5
Beneficial interest obtained in exchange for securitized accounts receivable		$187.7			$119.4			$222.1

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	44

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY



	Total Alliant Energy Common Equity
								Accumulated			Shares in			Cumulative
			Additional					Other			Deferred			Preferred
	Common		Paid-In		Retained			Comprehensive			Compensation			Stock		Total
	Stock		Capital		Earnings			Income (Loss)			Trust			of IPL		Equity
	(in millions)
2017:
Beginning balance		$2.3		$1,693.1		$2,177.0			($0.4	)		($10.0	)		$200.0		$4,062.0
Net income attributable to Alliant Energy common shareowners					457.3											457.3
Common stock dividends ($1.26 per share)					(288.3		)									(288.3		)
At-the-market offering program and Shareowner Direct Plan issuances			149.6													149.6
Equity-based compensation plans and other			2.8								(1.1		)			1.7
Other comprehensive loss, net of tax								(0.1		)						(0.1		)
Ending balance	2.3		1,845.5		2,346.0			(0.5		)	(11.1		)	200.0		4,382.2
2018:
Net income attributable to Alliant Energy common shareowners					512.1											512.1
Common stock dividends ($1.34 per share)					(312.2		)									(312.2		)
At-the-market offering program and Shareowner Direct Plan issuances	0.1		196.5													196.6
Equity-based compensation plans and other			3.5								1.3					4.8
Other comprehensive income, net of tax								2.2								2.2
Ending balance	2.4		2,045.5		2,545.9			1.7			(9.8		)	200.0		4,785.7
2019:
Net income attributable to Alliant Energy common shareowners					557.2											557.2
Common stock dividends ($1.42 per share)					(337.7		)									(337.7		)
Equity forward settlements and Shareowner Direct Plan issuances	0.1		390.2													390.3
Equity-based compensation plans and other			10.2								(0.2		)			10.0
Other comprehensive loss, net of tax								(0.4		)						(0.4		)
Ending balance		$2.5		$2,445.9		$2,765.4			$1.3			($10.0	)		$200.0		$5,405.1

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	45

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of Interstate Power and Light Company:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Interstate Power and Light Company and subsidiary (the “Company”) as of December 31, 2019 and 2018, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 21, 2020

We have served as the Company’s auditor since 2002.



	46

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2019			2018			2017
	(in millions)
Revenues:
Electric utility		$1,781.2			$1,731.1			$1,598.9
Gas utility	264.2			266.2			226.0
Steam and other	44.2			45.0			45.4
Total revenues	2,089.6			2,042.3			1,870.3
Operating expenses:
Electric production fuel and purchased power	434.5			469.0			443.6
Electric transmission service	340.2			352.9			310.4
Cost of gas sold	119.9			129.6			115.6
Other operation and maintenance	404.6			402.6			396.6
Depreciation and amortization	326.7			283.5			245.0
Taxes other than income taxes	60.9			53.9			55.0
Total operating expenses	1,686.8			1,691.5			1,566.2
Operating income	402.8			350.8			304.1
Other (income) and deductions:
Interest expense	126.9			119.4			112.4
Allowance for funds used during construction	(49.4		)	(42.2		)	(31.4		)
Other	6.9			2.6			7.0
Total other (income) and deductions	84.4			79.8			88.0
Income before income taxes	318.4			271.0			216.1
Income tax expense (benefit)	24.1			(3.2		)	(10.9		)
Net income	294.3			274.2			227.0
Preferred dividend requirements	10.2			10.2			10.2
Net income available for common stock		$284.1			$264.0			$216.8

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	47

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS



	December 31,
	2019		2018
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$9.3		$9.7
Accounts receivable, less allowance for doubtful accounts	202.8		153.5
Production fuel, at weighted average cost	47.1		44.8
Gas stored underground, at weighted average cost	21.7		26.1
Materials and supplies, at weighted average cost	55.0		55.4
Regulatory assets	43.5		39.2
Other	30.0		43.1
Total current assets	409.4		371.8
Property, plant and equipment, net	7,480.7		6,781.5
Other assets:
Regulatory assets	1,355.8		1,239.8
Deferred charges and other	31.6		18.3
Total other assets	1,387.4		1,258.1
Total assets		$9,277.5		$8,411.4



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$200.0		$—
Commercial paper	—		50.4
Accounts payable	207.0		304.9
Regulatory liabilities	115.9		90.0
Accrued taxes	63.3		45.8
Accrued interest	36.6		31.2
Other	207.7		84.8
Total current liabilities	830.5		607.1
Long-term debt, net (excluding current portion)	2,947.3		2,552.3
Other liabilities:
Deferred tax liabilities	1,008.0		957.3
Regulatory liabilities	598.8		664.9
Pension and other benefit obligations	167.7		178.4
Other	253.4		220.7
Total other liabilities	2,027.9		2,021.3
Commitments and contingencies (Note 17)
Equity:
Interstate Power and Light Company common equity:
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding	33.4		33.4
Additional paid-in capital	2,347.8		2,222.8
Retained earnings	890.6		774.5
Total Interstate Power and Light Company common equity	3,271.8		3,030.7
Cumulative preferred stock	200.0		200.0
Total equity	3,471.8		3,230.7
Total liabilities and equity		$9,277.5		$8,411.4

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	48

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2019			2018			2017
	(in millions)
Cash flows from (used for) operating activities:
Net income		$294.3			$274.2			$227.0
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Depreciation and amortization	326.7			283.5			245.0
Deferred tax expense and tax credits	15.3			2.2			55.8
Equity component of allowance for funds used during construction	(35.2		)	(28.6		)	(21.1		)
Other	1.0			3.6			1.5
Other changes in assets and liabilities:
Accounts receivable	(466.6		)	(494.0		)	(478.7		)
Regulatory assets	(11.5		)	(20.2		)	(126.2		)
Accounts payable	(20.5		)	(24.9		)	24.0
Regulatory liabilities	2.0			0.6			(71.2		)
Deferred income taxes	35.2			43.8			103.7
Other	32.2			(45.2		)	18.4
Net cash flows from (used for) operating activities	172.9			(5.0		)	(21.8		)
Cash flows used for investing activities:
Construction and acquisition expenditures	(1,019.6		)	(990.7		)	(676.0		)
Cash receipts on sold receivables	413.2			605.3			461.8
Other	(60.6		)	(44.0		)	(27.7		)
Net cash flows used for investing activities	(667.0		)	(429.4		)	(241.9		)
Cash flows from financing activities:
Common stock dividends	(168.0		)	(168.0		)	(156.1		)
Capital contributions from parent	125.0			425.0			200.0
Proceeds from issuance of long-term debt	600.0			500.0			250.0
Payments to retire long-term debt	—			(350.0		)	—
Net change in commercial paper	(50.4		)	50.4			—
Other	(15.6		)	(17.8		)	(27.2		)
Net cash flows from financing activities	491.0			439.6			266.7
Net increase (decrease) in cash, cash equivalents and restricted cash	(3.1		)	5.2			3.0
Cash, cash equivalents and restricted cash at beginning of period	12.4			7.2			4.2
Cash, cash equivalents and restricted cash at end of period		$9.3			$12.4			$7.2
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest		($121.6	)		($120.3	)		($111.8	)
Income taxes, net		$6.9			($23.8	)		$8.6
Significant non-cash investing and financing activities:
Accrued capital expenditures		$111.6			$186.6			$76.4
Beneficial interest obtained in exchange for securitized accounts receivable		$187.7			$119.4			$222.1

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	49

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF EQUITY



	Total IPL Common Equity
			Additional					Cumulative
	Common		Paid-In		Retained			Preferred		Total
	Stock		Capital		Earnings			Stock		Equity
	(in millions)
2017:
Beginning balance		$33.4		$1,597.8		$617.8			$200.0		$2,449.0
Net income available for common stock					216.8					216.8
Common stock dividends					(156.1		)			(156.1		)
Capital contribution from parent			200.0							200.0
Ending balance	33.4		1,797.8		678.5			200.0		2,709.7
2018:
Net income available for common stock					264.0					264.0
Common stock dividends					(168.0		)			(168.0		)
Capital contribution from parent			425.0							425.0
Ending balance	33.4		2,222.8		774.5			200.0		3,230.7
2019:
Net income available for common stock					284.1					284.1
Common stock dividends					(168.0		)			(168.0		)
Capital contribution from parent			125.0							125.0
Ending balance		$33.4		$2,347.8		$890.6			$200.0		$3,471.8

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowner and the Board of Directors of Wisconsin Power and Light Company:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Wisconsin Power and Light Company and subsidiary (the “Company”) as of December 31, 2019 and 2018, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 21, 2020

We have served as the Company’s auditor since 2002.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2019			2018			2017
	(in millions)
Revenues:
Electric utility		$1,282.4			$1,269.2			$1,295.8
Gas utility	191.0			180.4			174.9
Other	2.3			3.0			2.1
Total revenues	1,475.7			1,452.6			1,472.8
Operating expenses:
Electric production fuel and purchased power	342.2			386.0			374.5
Electric transmission service	141.2			142.8			170.5
Cost of gas sold	101.8			102.7			95.8
Other operation and maintenance	260.9			241.6			238.5
Depreciation and amortization	235.6			219.4			212.9
Taxes other than income taxes	46.8			47.2			46.9
Total operating expenses	1,128.5			1,139.7			1,139.1
Operating income	347.2			312.9			333.7
Other (income) and deductions:
Interest expense	102.2			97.8			93.8
Allowance for funds used during construction	(43.3		)	(33.4		)	(18.3		)
Other	6.0			4.2			9.7
Total other (income) and deductions	64.9			68.6			85.2
Income before income taxes	282.3			244.3			248.5
Income taxes	49.3			36.2			61.9
Net income		$233.0			$208.1			$186.6

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS



	December 31,
	2019		2018
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$4.4		$8.7
Accounts receivable, less allowance for doubtful accounts	190.9		190.1
Production fuel, at weighted average cost	30.6		16.6
Gas stored underground, at weighted average cost	27.4		22.9
Materials and supplies, at weighted average cost	43.1		42.9
Regulatory assets	42.9		40.6
Prepaid gross receipts tax	41.7		42.2
Other	61.7		20.6
Total current assets	442.7		384.6
Property, plant and equipment, net	5,638.3		5,287.3
Other assets:
Regulatory assets	402.5		417.7
Deferred charges and other	23.0		62.9
Total other assets	425.5		480.6
Total assets		$6,506.5		$6,152.5



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$150.0		$250.0
Commercial paper	168.2		105.5
Accounts payable	159.9		180.9
Accounts payable to associated companies	41.8		31.8
Regulatory liabilities	96.1		52.7
Other	74.3		73.7
Total current liabilities	690.3		694.6
Long-term debt, net (excluding current portion)	1,782.7		1,584.9
Other liabilities:
Deferred tax liabilities	626.2		582.0
Regulatory liabilities	612.8		685.6
Finance lease obligations - Sheboygan Falls Energy Facility	51.4		60.0
Pension and other benefit obligations	210.8		217.7
Other	168.7		178.2
Total other liabilities	1,669.9		1,723.5
Commitments and contingencies (Note 17)
Equity:
Wisconsin Power and Light Company common equity:
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding	66.2		66.2
Additional paid-in capital	1,434.0		1,309.0
Retained earnings	863.4		774.3
Total Wisconsin Power and Light Company common equity	2,363.6		2,149.5
Total liabilities and equity		$6,506.5		$6,152.5

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2019			2018			2017
	(in millions)
Cash flows from operating activities:
Net income		$233.0			$208.1			$186.6
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	235.6			219.4			212.9
Deferred tax expense and tax credits	23.6			49.8			53.9
Other	(11.5		)	(17.5		)	4.4
Other changes in assets and liabilities:
Regulatory liabilities	(42.3		)	0.7			(12.6		)
Other	(15.2		)	(3.5		)	20.5
Net cash flows from operating activities	423.2			457.0			465.7
Cash flows used for investing activities:
Construction and acquisition expenditures	(518.8		)	(577.6		)	(637.4		)
Other	(38.4		)	(29.9		)	(29.9		)
Net cash flows used for investing activities	(557.2		)	(607.5		)	(667.3		)
Cash flows from financing activities:
Common stock dividends	(143.9		)	(140.1		)	(125.9		)
Capital contribution from parent	125.0			200.0			90.0
Proceeds from issuance of long-term debt	350.0			—			300.0
Payments to retire long-term debt	(250.0		)	—			—
Net change in commercial paper	62.7			80.5			(27.3		)
Other	(14.6		)	(4.9		)	(17.9		)
Net cash flows from financing activities	129.2			135.5			218.9
Net increase (decrease) in cash, cash equivalents and restricted cash	(4.8		)	(15.0		)	17.3
Cash, cash equivalents and restricted cash at beginning of period	9.2			24.2			6.9
Cash, cash equivalents and restricted cash at end of period		$4.4			$9.2			$24.2
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest		($102.5	)		($98.1	)		($91.7	)
Income taxes, net		($28.9	)		$14.0			($8.4	)
Significant non-cash investing and financing activities:
Accrued capital expenditures		$81.5			$102.5			$114.5

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF EQUITY



			Additional					Total
	Common		Paid-In		Retained			Common
	Stock		Capital		Earnings			Equity
	(in millions)
2017:
Beginning balance		$66.2		$1,019.0		$645.6			$1,730.8
Net income					186.6			186.6
Common stock dividends					(125.9		)	(125.9		)
Capital contribution from parent			90.0					90.0
Ending balance	66.2		1,109.0		706.3			1,881.5
2018:
Net income					208.1			208.1
Common stock dividends					(140.1		)	(140.1		)
Capital contribution from parent			200.0					200.0
Ending balance	66.2		1,309.0		774.3			2,149.5
2019:
Net income					233.0			233.0
Common stock dividends					(143.9		)	(143.9		)
Capital contribution from parent			125.0					125.0
Ending balance		$66.2		$1,434.0		$863.4			$2,363.6

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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ALLIANT ENERGY CORPORATION

INTERSTATE POWER AND LIGHT COMPANY

WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1(a) General -

Description of Business - Alliant Energy’s financial statements include the accounts of Alliant Energy and its consolidated subsidiaries. Alliant Energy is a Midwest U.S. energy holding company, whose primary wholly-owned subsidiaries are IPL, WPL, AEF and Corporate Services.

IPL’s financial statements include the accounts of IPL and its consolidated subsidiary, IPL SPE LLC, which is used for IPL’s sales of accounts receivable program. IPL is a direct subsidiary of Alliant Energy and is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in Iowa. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, and is engaged in the generation and distribution of steam for two customers in Cedar Rapids, Iowa.

WPL’s financial statements include the accounts of WPL and its consolidated subsidiary. WPL is a direct subsidiary of Alliant Energy and is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in Wisconsin. WPL also sells electricity to wholesale customers in Wisconsin.

AEF is comprised of Transportation, ATI, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings. Transportation includes a short-line railway that provides freight service between Cedar Rapids, Iowa and Iowa City, Iowa; a barge terminal and hauling services on the Mississippi River; customized supply chain solution capabilities; freight and logistics brokering services; and other transfer and storage services. ATI, a wholly-owned subsidiary of AEF, holds all of Alliant Energy’s interest in ATC Holdings. The non-utility wind farm includes a 50% cash equity ownership interest in a 225 MW wind farm located in Oklahoma. The Sheboygan Falls Energy Facility is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025.

Corporate Services is the subsidiary formed to provide administrative services to Alliant Energy and its subsidiaries.

Basis of Presentation - The financial statements reflect investments in controlled subsidiaries on a consolidated basis and Alliant Energy’s, IPL’s and WPL’s proportionate shares of jointly-owned utility EGUs. Unconsolidated investments that Alliant Energy and WPL do not control are accounted for under the equity method of accounting. Under the equity method of accounting, Alliant Energy and WPL initially record the investment at cost, and adjust the carrying amount of the investment to recognize their respective share of the earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investment. Investments that do not meet the criteria for consolidation or the equity method of accounting are accounted for under the cost method.

All intercompany balances and transactions, other than certain transactions affecting the rate-making process at IPL and WPL, have been eliminated from the financial statements. Such transactions not eliminated include costs that are recoverable from customers through rate-making processes. The financial statements are prepared in conformity with GAAP, which give recognition to the rate-making practices of FERC and state commissions having regulatory jurisdiction.

Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes. Discontinued operations reported in Alliant Energy’s income statements are related to various warranty claims associated with the sale of RMT, Inc. in 2013, which has resulted in income subsequent to the sale. Alliant Energy presents cash flows from continuing operations together with cash flows from discontinued operations in its cash flows statements.

Use of Estimates - The preparation of the financial statements requires management to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



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NOTE 1(b) Regulatory Assets and Regulatory Liabilities - Alliant Energy, IPL and WPL are subject to regulation by FERC and various state regulatory commissions. As a result, Alliant Energy, IPL and WPL are subject to GAAP provisions for regulated operations, which provide that rate-regulated public utilities record certain costs and credits allowed in the rate-making process in different periods than for non-utility entities. Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred. Amounts recorded as regulatory assets or regulatory liabilities are generally recognized in the income statements at the time they are reflected in rates.

NOTE 1(c) Income Taxes - The liability method of accounting is followed for deferred taxes, which requires the establishment of deferred tax assets and liabilities, as appropriate, for temporary differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. Deferred taxes are recorded using currently enacted tax rates and estimates of state apportionment. Changes in deferred tax assets and liabilities associated with certain property-related differences at IPL are accounted for differently than other subsidiaries of Alliant Energy due to rate-making practices in Iowa. Rate-making practices in Iowa do not include the impact of certain deferred tax expenses (benefits) in the determination of retail rates. Based on these rate-making practices, deferred tax expense (benefit) related to these property-related differences at IPL is not recorded in the income statement but instead recorded to regulatory assets or regulatory liabilities until these temporary differences reverse. In Wisconsin, the PSCW allows rate recovery of deferred tax expense on all temporary differences.

Investment tax credits are deferred and amortized to income over the average lives of the related property. Federal Tax Reform repealed corporate federal alternative minimum tax and allows unutilized alternative minimum tax credits to be refunded over four tax years beginning with the U.S. federal tax return for calendar year 2018. Other tax credits reduce income tax expense in the year claimed.

Alliant Energy files a consolidated federal income tax return and a combined return in Wisconsin, which include Alliant Energy and its subsidiaries. Alliant Energy subsidiaries with a presence in Iowa file as part of a consolidated return in Iowa.

Alliant Energy allocates consolidated income tax expense to its subsidiaries that are members of the group that file a consolidated or combined income tax return. IPL and WPL use the modified separate return approach for calculating their income tax provisions and related deferred tax assets and liabilities. IPL and WPL are assumed to file separate tax returns with the federal and state taxing authorities, except that net operating losses (and other current or deferred tax attributes) are characterized as realized (or realizable) by IPL and WPL when those tax attributes are realized (or realizable) by the consolidated tax return group of Alliant Energy (even if IPL and WPL would not otherwise have realized the attributes on a stand-alone basis). The difference in the income taxes recorded for IPL and WPL under the modified separate return method compared to the income taxes recorded on a separate return basis was not material in 2019, 2018 and 2017.

NOTE 1(d) Cash, Cash Equivalents and Restricted Cash - Cash and cash equivalents include short-term liquid investments that have original maturities of less than 90 days. At December 31, 2019 and 2018, restricted cash primarily related to requirements in Sheboygan Power, LLC’s debt agreement.

NOTE 1(e) Property, Plant and Equipment -

Utility Plant -

General - Utility plant is recorded at the original cost of acquisition or construction, which includes material, labor, contractor services, AFUDC and allocable overheads, such as supervision, engineering, benefits, certain taxes and transportation. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Property, plant and equipment that is probable of being retired early is classified as plant anticipated to be retired early. Generally, ordinary retirements of utility plant and salvage value are netted and charged to accumulated depreciation upon removal from utility plant accounts and no gain or loss is recognized consistent with rate-making principles. However, if regulators have approved recovery of the remaining net book value of property, plant and equipment that is retired early, or such approval by regulators is probable, the remaining net book value is reclassified from property, plant and equipment to regulatory assets upon retirement.

Depreciation - IPL and WPL use a combination of remaining life and straight-line depreciation methods as approved by their respective regulatory commissions. The composite or group method of depreciation is used, in which a single depreciation rate is applied to the gross investment in a particular class of property. This method pools similar assets and then depreciates each group as a whole. Periodic depreciation studies are performed to determine the appropriate group lives, net salvage, estimated cost of removal and group depreciation rates. These depreciation studies are subject to review and approval by



	57

IPL’s and WPL’s respective regulatory commissions. Depreciation expense is included within the recoverable cost of service component of rates collected from customers. The average rates of depreciation for electric, gas and other properties, consistent with current rate-making practices, were as follows:



	IPL			WPL
	2019	2018	2017	2019	2018	2017
Electric - generation	3.8%	3.6%	3.5%	3.6%	3.6%	3.5%
Electric - distribution	2.9%	2.8%	2.4%	2.6%	2.6%	2.6%
Electric - other	5.3%	4.7%	4.5%	5.8%	5.7%	6.9%
Gas	3.3%	3.2%	3.4%	2.5%	2.5%	2.5%
Other	5.9%	5.2%	4.0%	5.6%	5.8%	6.0%

AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. AFUDC for IPL’s construction projects is calculated in accordance with FERC guidelines. AFUDC for WPL’s retail and wholesale jurisdiction construction projects is calculated in accordance with PSCW and FERC guidelines, respectively. The AFUDC rates, computed in accordance with the prescribed regulatory formula, were as follows:



	2019	2018	2017
IPL (Marshalltown CWIP)	N/A	N/A	7.8%
IPL (Wind generation CWIP)	7.4%	7.5%	7.6%
IPL (other CWIP)	7.5%	7.5%	7.6%
WPL (retail jurisdiction)	6.8%	7.7%	7.6%
WPL (wholesale jurisdiction)	6.9%	7.2%	6.0%

In accordance with their respective regulatory commission decisions, IPL applies its AFUDC rates to 100% of applicable CWIP balances and WPL generally applies its AFUDC rates to 50% of applicable CWIP balances. WPL may apply its AFUDC rates to 100% of the retail portion of the CWIP balances for construction projects requiring a CA or CPCN that were approved by the PSCW after its most recent rate order, including West Riverside.

Non-utility and Other Property -

General - Non-utility property is recorded at the original cost of acquisition or construction, which includes material, labor and contractor services. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Upon retirement or sale of non-utility property, the original cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the income statements.

Costs related to software developed or obtained for internal use are capitalized and amortized on a straight-line basis over the estimated useful life of the related software. If software is retired prior to being fully amortized, the remaining book value is recorded as a loss in the income statements.

NOTE 1(f) Revenue Recognition -

Utility - Revenues from Alliant Energy’s utility business are primarily from electric and gas sales to customers. Utility revenues are recognized over time as services are rendered or commodities are delivered to customers, and include billed and unbilled components. The billed component is based on the reading of customers’ meters, which occurs on a systematic basis throughout each reporting period and represents the fair value of the services provided or commodities delivered. The unbilled component is estimated and recorded at the end of each reporting period based on estimated amounts of energy delivered to customers since the end of each customer’s last billing period. The unbilled revenue is based on estimates of daily system demand volumes, customer usage by class, temperature impacts, line losses and the most recent customer rates.

IPL and WPL accrue revenues from their wholesale customers to the extent that the actual net revenue requirements calculated in accordance with FERC-approved formula rates for the reporting period are higher or lower than the amounts billed to wholesale customers during such period. Regulatory assets or regulatory liabilities are recorded as the offset for these accrued revenues under formulaic rate-making programs. As of December 31, 2019, the related amounts accrued for IPL and WPL were not material.

IPL and WPL participate in bid/offer-based wholesale energy and ancillary services markets operated by MISO. The MISO transactions are grouped together, resulting in a net supply to or net purchase from MISO for each hour of each day. The net



	58

supply to MISO is recorded as bulk power sales in “Electric utility revenues” and the net purchase from MISO is recorded in “Electric production fuel and purchased power” in the income statements.

Non-utility - Revenues from Alliant Energy’s non-utility businesses are primarily from its Transportation business and are recognized over time as services are rendered to customers.

Taxes Collected from Customers - Sales or various other taxes collected by certain of Alliant Energy’s subsidiaries on behalf of other agencies are recorded on a net basis and are not included in revenues.

Other - Alliant Energy, IPL and WPL do not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one year or less; and (ii) contracts for which revenue is recognized at the amount to which they have the right to invoice for services performed.

NOTE 1(g) Utility Cost Recovery Mechanisms

Electric Production Fuel and Purchased Power (Fuel-related Costs) - Fuel-related costs are incurred to generate and purchase electricity to meet the demand of IPL’s and WPL’s electric customers. These fuel-related costs include the cost of fossil fuels (primarily natural gas and coal) used to produce electricity at their EGUs, and electricity purchased from MISO wholesale energy markets and under PPAs. These fuel-related costs are recorded in “Electric production fuel and purchased power” in the income statements.

IPL Retail - The cost recovery mechanisms for IPL’s retail electric customers provide for monthly adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.

WPL Retail - The cost recovery mechanism for WPL’s retail electric customers is based on forecasts of certain fuel-related costs expected to be incurred during forward-looking test periods and fuel monitoring ranges determined by the PSCW during each retail electric rate proceeding or in a separate fuel cost plan approval proceeding. If WPL’s actual fuel-related costs fall outside these fuel monitoring ranges, WPL is authorized to defer the incremental under-/over-collection of fuel-related costs that are outside the approved ranges. Deferral of under-collections are reduced to the extent actual return on common equity earned by WPL during the fuel cost plan year exceeds the most recently authorized return on common equity. Deferred amounts for fuel-related costs outside the approved fuel monitoring ranges are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and WPL’s income statements. The cumulative effects of these deferred amounts are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until they are reflected in future billings to customers.

IPL and WPL Wholesale - The cost recovery mechanisms for IPL’s and WPL’s wholesale electric customers provide for subsequent adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

Purchased Electric Capacity - PPAs help meet the electricity demand of IPL’s and WPL’s customers. Certain PPAs include minimum payments for IPL’s and WPL’s rights to electric generating capacity, which are charged each period to “Electric production fuel and purchased power” in the income statements. Purchased electric capacity expenses are recovered from IPL’s and WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Purchased electric capacity expenses are recovered from IPL’s and WPL’s wholesale electric customers through annual changes in base rates determined by a formula rate structure.

Electric Transmission Service - Costs incurred for the transmission of electricity to meet the demands of IPL’s and WPL’s customers are charged to “Electric transmission service” in the income statements.

IPL Retail - Electric transmission service expense is recovered from IPL’s retail electric customers through a transmission cost rider. This cost recovery mechanism provides for annual adjustments to electric rates charged to retail electric customers for changes in electric transmission service expense. Changes in the under-/over-collection of these costs are recognized in “Electric transmission service” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.



	59

WPL Retail - Electric transmission service expense is recovered from WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Pursuant to escrow accounting treatment approved by the PSCW, the difference between actual electric transmission service expense incurred and the amount of electric transmission service costs collected from customers as electric revenues is recognized in “Electric transmission service” in Alliant Energy’s and WPL’s income statements. An offsetting amount is recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until reflected in future billings to customers.

IPL and WPL Wholesale - IPL and WPL arrange transmission service for the majority of their respective wholesale electric customers. Electric transmission service expense is allocated to and recovered from these customers based on a load ratio share computation.

Cost of Gas Sold - Costs are incurred for the purchase, transportation and storage of natural gas to serve IPL’s and WPL’s gas customers and the costs associated with the natural gas delivered to customers are charged to “Cost of gas sold” in the income statements. The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates each month for changes in the cost of gas sold. Changes in the under-/over-collection of these costs are also recognized in “Cost of gas sold” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

Energy Efficiency Costs - Costs incurred to fund energy efficiency programs and initiatives that help customers reduce their energy usage are charged to “Other operation and maintenance” in the income statements. Energy efficiency costs incurred by IPL are recovered from its retail electric and gas customers through an additional tariff called an energy efficiency cost recovery factor, which is revised annually and includes a reconciliation to eliminate any under-/over-collection of energy efficiency costs from prior periods. Energy efficiency costs incurred by WPL are recovered from retail electric and gas customers through changes in base rates determined during periodic rate proceedings. Reconciliations of any under-/over-collection of energy efficiency costs from prior periods are also addressed in WPL’s periodic rate proceedings. Changes in the under-/over-collection of energy efficiency costs for IPL and WPL are recognized in “Other operation and maintenance” in the income statements. The cumulative effects of the under-/over-collection of these costs for IPL and WPL are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

Renewable Energy Rider - Effective with the implementation of final rates covering the 2020 forward-looking Test Period, IPL will recover a return of, as well as earn a return on, its 1,000 MW of new wind generation placed in service in 2019 and 2020 from its retail electric customers through a renewable energy rider. Other applicable costs and tax benefits associated with the new wind generation, excluding operation and maintenance expenses, will also be included in the rider. This cost recovery mechanism provides for annual adjustments to electric rates charged to IPL’s retail electric customers for actual renewable energy costs and tax benefits. Changes in the under-/over-collection of these costs will be recognized in “Electric utility revenue” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs for IPL will be recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.

NOTE 1(h) Financial Instruments - Financial instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. The fair value of those financial instruments that are determined to be derivatives are recorded as assets or liabilities on the balance sheets. Certain commodity purchase and sales contracts qualify for and have been designated under the normal purchase and sale exception and are accounted for on the accrual basis of accounting. Alliant Energy, IPL and WPL have elected to not net the fair value amounts of derivatives subject to a master netting arrangement by counterparty. Alliant Energy, IPL and WPL do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments that are executed with the same counterparty under the same master netting arrangement. Refer to Note 2 for discussion of the recognition of regulatory assets and regulatory liabilities related to the unrealized losses and gains on derivative instruments. Refer to Notes 15, 16 and 17(f) for further discussion of derivatives and related credit risk.

NOTE 1(i) Asset Impairments -

Property, Plant and Equipment of Regulated Operations - Property, plant and equipment of regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL or WPL are disallowed recovery of any portion of the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable recovery will be disallowed, an impairment charge is recognized equal



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to the amount of the carrying value that was disallowed or is probable of being disallowed. If IPL or WPL are only allowed a partial return on the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable a full return will not be allowed, an impairment charge is recognized equal to the difference between the carrying value and the present value of the future revenues expected from their regulated property, plant and equipment.

Property, Plant and Equipment of Non-utility Operations - Property, plant and equipment of non-utility operations are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Impairment is indicated if the carrying value of an asset exceeds its undiscounted future cash flows. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the asset’s fair value.

Unconsolidated Equity Investments - If events or circumstances indicate the carrying value of investments accounted for under the equity method of accounting exceeds fair value and the decline in value is other than temporary, potential impairment is assessed. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the investment’s fair value.

NOTE 1(j) Asset Retirement Obligations - The fair value of a legal obligation associated with the retirement of an asset is recorded as a liability when an asset is placed in service, when a legal obligation is subsequently identified or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement costs. When an ARO is recorded as a liability, an equivalent amount is added to the asset cost. The fair value of AROs at inception is determined using discounted cash flows analyses. The liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. Accretion and depreciation expenses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory assets on the balance sheets. Upon regulatory approval to recover IPL’s AROs expenditures, its regulatory assets are amortized to depreciation and amortization expenses in Alliant Energy’s and IPL’s income statements over the same time period the ARO expenditures are recovered from IPL’s customers. WPL’s regulatory assets related to AROs are being recovered as a component of depreciation rates pursuant to PSCW and FERC orders. Accretion and depreciation expenses related to AROs for Alliant Energy’s non-utility operations are recorded to depreciation and amortization expenses in Alliant Energy’s income statements. Upon settlement of the ARO liability, an entity settles the obligation for its recorded amount or incurs a gain or loss. Any gains or losses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory liabilities or regulatory assets on the balance sheets.

NOTE 1(k) Debt Issuance and Retirement Costs - Debt issuance costs and debt premiums or discounts are presented on the balance sheet as a direct adjustment to the carrying amount of the related debt liability, and are deferred and amortized over the expected life of each debt issue, considering maturity dates and, if applicable, redemption rights held by others. Alliant Energy’s non-utility businesses and Corporate Services record to interest expense in the period of retirement any unamortized debt issuance costs and debt premiums or discounts on debt retired early.

NOTE 1(l) Allowance for Doubtful Accounts - Allowances for doubtful accounts are recorded for estimated losses resulting from the inability of customers to make required payments. Allowances for doubtful accounts are estimated based on historical write-offs, customer arrears and other economic factors within IPL’s and WPL’s service territories.

NOTE 1(m) Variable Interest Entities - An entity is considered a VIE if its equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, the entity is structured with disproportionate voting rights and substantially all of the entity’s activities are conducted on behalf of the investor with disproportionately fewer voting rights, or its equity investors lack any of the following characteristics: (1) power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb expected losses of the entity; or (3) the right to receive expected benefits of the entity. The primary beneficiary of a VIE is required to consolidate the VIE. The financial statements do not reflect any consolidation of VIEs.

NOTE 1(n) Leases - The determination of whether an arrangement qualifies as a lease occurs at the inception of the arrangement. Arrangements that qualify as leases are classified as either operating or finance. Operating and finance lease liabilities represent obligations to make payments arising from the lease. Operating and finance lease assets represent the right to use an underlying asset for the lease term and are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Leases with initial terms less than 12 months are not recognized as leases. For operating leases, an incremental borrowing rate, as determined at the lease commencement date, is used to determine the present value of the lease payments. For finance leases, the rate implicit in the lease, if known, is used to determine the present value of the lease payments. Lease terms include options to extend or terminate the lease when it is reasonably



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certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the expected lease term. Finance lease expense is comprised of depreciation and interest expenses. Finance lease assets are depreciated on a straight-line basis over the shorter of the useful life of the underlying asset or the lease term.

NOTE 1(o) New Accounting Standards -

Credit Losses - In June 2016, the FASB issued an accounting standard requiring use of a current expected credit loss model rather than an incurred loss method, which is intended to result in more timely recognition of credit losses on trade receivables and certain other assets. Alliant Energy, IPL and WPL adopted this standard on January 1, 2020 using a modified retrospective method of adoption, which requires cumulative effect adjustments to retained earnings on January 1, 2020. IPL and WPL did not record a cumulative effect adjustment to retained earnings and do not expect a material change to their financial condition or results of operations as a result of adopting this standard. Alliant Energy’s non-regulated entities continue to evaluate the final adoption impact for credit loss exposures related to their existing guarantees (described in Note 17(d)); however, Alliant Energy does not expect a material change in its financial condition or results of operations as a result of adopting this standard.

Cloud Computing Arrangements - In August 2018, the FASB issued an accounting standard that clarifies capitalization and presentation requirements of implementation costs incurred in cloud computing arrangements. Alliant Energy, IPL and WPL adopted this standard on January 1, 2020 and do not expect a material change to their financial condition or results of operations as a result of adopting this standard.

Leases - In February 2016, the FASB issued an accounting standard requiring lease assets and lease liabilities, including operating leases, to be recognized on the balance sheet. The accounting for capital leases, referred to as finance leases, remains unchanged with the adoption of this standard. Alliant Energy, IPL and WPL adopted this standard on January 1, 2019 using an optional transition approach and there was no cumulative effect adjustment to the balance sheets as of January 1, 2019. Prior period amounts have not been restated to reflect the adoption of this standard and continue to be reported under the accounting standards in effect for those periods. Upon transition to the new standard, Alliant Energy, IPL and WPL elected the land easement transition practical expedient, which does not require existing land easements that were not previously accounted for as leases under the original accounting standards to be reassessed under the new standard. In addition, Alliant Energy, IPL and WPL evaluated land easements that were previously accounted for as leases and determined that the majority of these land easements relate to joint-use land sites, which under the new standard, do not meet the criteria for leases. Therefore, these land easement arrangements are no longer reflected as operating leases effective January 1, 2019. Refer to Note 10 for further discussion of leases.

NOTE 2. REGULATORY MATTERS

Regulatory Assets - Alliant Energy, IPL and WPL assess whether IPL’s and WPL’s regulatory assets are probable of future recovery by considering factors such as applicable regulations, recent orders by the applicable regulatory agencies, historical treatment of similar costs by the applicable regulatory agencies and regulatory environment changes. Based on these assessments, Alliant Energy, IPL and WPL believe the regulatory assets recognized as of December 31, 2019 are probable of future recovery. However, no assurance can be made that IPL and WPL will recover all of these regulatory assets in future rates. If future recovery of a regulatory asset ceases to be probable, the regulatory asset will be charged to expense. At December 31, regulatory assets were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	2019		2018		2019		2018		2019		2018
Tax-related		$817.6		$820.6		$776.8		$783.1		$40.8		$37.5
Pension and OPEB costs	524.0		542.3		262.5		274.0		261.5		268.3
Assets retired early	134.0		111.6		87.9		55.4		46.1		56.2
AROs	111.8		110.8		76.2		76.3		35.6		34.5
IPL’s DAEC PPA amendment	108.2		—		108.2		—		—		—
Derivatives	39.5		28.0		18.3		15.1		21.2		12.9
Emission allowances	21.1		23.6		21.1		23.6		—		—
Other	88.5		100.4		48.3		51.5		40.2		48.9
		$1,844.7		$1,737.3		$1,399.3		$1,279.0		$445.4		$458.3

At December 31, 2019, IPL and WPL had $78 million and $6 million, respectively, of regulatory assets that were not earning a return. IPL’s regulatory assets that were not earning a return consisted primarily of certain assets retired early, emission allowances, debt redemption costs and costs for clean air compliance projects. WPL’s regulatory assets that were not earning a return consisted primarily of environmental-related costs and costs for future expansion projects. The other regulatory



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assets reported in the above table either earn a return or the cash has not yet been expended, in which case the assets are offset by liabilities that also do not incur a carrying cost.

Tax-related - IPL and WPL record regulatory assets for certain temporary differences (primarily related to utility property, plant and equipment at IPL) that result in a decrease in current rates charged to customers and an increase in future rates charged to customers based on the timing of income tax expense that is used to determine such rates. These temporary differences for IPL include the impacts of qualifying deductions for repairs expenditures, allocation of mixed service costs, and Iowa accelerated tax depreciation, which all contribute to lower current income tax expense during the first part of an asset’s useful life and higher current income tax expense during the latter part of an asset’s useful life. These regulatory assets will be recovered from customers in the future when these temporary differences reverse resulting in additional current income tax expense used to determine customers’ rates.

Pension and other postretirement benefits costs - The IUB, PSCW and FERC have authorized IPL and WPL to record the previously unrecognized net actuarial gains and losses, and prior service costs and credits, as regulatory assets in lieu of accumulated other comprehensive loss on the balance sheets, as these amounts are expected to be recovered in future rates. These regulatory assets will be increased or decreased as the net actuarial gains or losses, and prior service costs or credits, are subsequently amortized and recognized as a component of net periodic benefit costs. Regulatory assets are also increased or decreased as a result of the annual defined benefit plan measurement process. Pension and OPEB costs are included within the recoverable cost of service component of rates charged to IPL’s and WPL’s retail and wholesale customers, which are based upon pension and OPEB costs determined in accordance with GAAP and are calculated in accordance with IPL’s and WPL’s respective regulatory jurisdictions.

Assets retired early - IPL and WPL have retired various natural gas- and coal-fired EGUs, and IPL has retired certain analog electric meters. As a result, the remaining net book value of these assets was reclassified from property, plant and equipment to a regulatory asset on their respective balance sheets. Details regarding the recovery of the remaining net book value of these assets from IPL’s and WPL’s customers are as follows:



Entity	Asset	Retirement Date	Regulatory Asset Balance as of Dec. 31, 2019		Recovery	Regulatory Approval
IPL	Sutherland Units 1 and 3	2017		$28.5	Return of and return on remaining net book value over 10 years (return on effective with new rates expected to be implemented by the end of the first quarter of 2020)	IUB and FERC
IPL	M.L. Kapp Unit 2	2018	23.6		Return of and return on remaining net book value over 10 years	IUB and FERC
IPL	Analog electric meters	2019	35.8		Return of remaining net book value over 10 years (effective with new rates expected to be implemented by the end of the first quarter of 2020)	IUB
WPL	Nelson Dewey Units 1 and 2 and Edgewater Unit 3	2015	20.2		Return of and return on remaining net book value over 10 years	PSCW and FERC
WPL	Edgewater Unit 4	2018	25.9		Return of and return on remaining net book value over 10 years	PSCW and FERC

AROs - Alliant Energy, IPL and WPL believe it is probable that certain differences between expenses accrued for legal AROs related to their utility operations and expenses recovered currently in rates will be recoverable in future rates, and are deferring the differences as regulatory assets.

IPL’s DAEC PPA Amendment - In January 2019, IPL incurred an obligation to make a September 2020 buyout payment of $110 million in exchange for shortening the term of IPL’s DAEC nuclear generation PPA by 5 years. The IUB approved recovery of the buyout payment with IPL’s 2020 Test Period retail electric rate review, which will be recovered from IPL’s retail customers over a 5-year period following the payment. The offsetting obligation has been discounted and is recorded in “Other current liabilities” on Alliant Energy’s and IPL’s balance sheets.

Derivatives - In accordance with IPL’s and WPL’s fuel and natural gas recovery mechanisms, prudently incurred costs from derivative instruments are recoverable from customers in the future after any losses are realized, and gains from derivative instruments are refundable to customers in the future after any gains are realized. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets.



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Emission allowances - IPL entered into forward contracts in 2007 to purchase sulfur dioxide emission allowances with vintage years of 2014 through 2017 from various counterparties to meet expected future emission reduction standards. Alliant Energy and IPL have recorded a regulatory asset for amounts paid under the forward contracts and are authorized to recover these amounts from its retail customers over a 10-year period.

Regulatory Liabilities - At December 31, regulatory liabilities were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	2019		2018		2019		2018		2019		2018
Tax-related		$835.6		$890.6		$350.9		$390.1		$484.7		$500.5
Cost of removal obligations	387.7		401.2		257.0		273.3		130.7		127.9
Electric transmission cost recovery	88.6		104.0		51.3		47.7		37.3		56.3
Commodity cost recovery	24.2		16.8		8.8		11.9		15.4		4.9
WPL’s earnings sharing mechanism	21.9		25.4		—		—		21.9		25.4
Derivatives	19.9		18.5		17.4		10.2		2.5		8.3
Other	45.7		36.7		29.3		21.7		16.4		15.0
		$1,423.6		$1,493.2		$714.7		$754.9		$708.9		$738.3

Tax-related regulatory liabilities reduce revenue requirement calculations utilized in IPL’s and WPL’s respective rate proceedings. Cost of removal obligations, to the extent expensed through depreciation rates, reduce rate base. A significant portion of the remaining regulatory liabilities are not used to adjust revenue requirement calculations.

Tax-related - Alliant Energy’s, IPL’s and WPL’s tax-related regulatory liabilities are primarily related to excess deferred tax benefits resulting from the remeasurement of accumulated deferred income taxes caused by Federal Tax Reform. The majority of these benefits related to accelerated depreciation are subject to tax normalization rules. These rules limit the rate at which these tax benefits are allowed to be passed on to customers.

Cost of removal obligations - Alliant Energy, IPL and WPL collect in rates future removal costs for many assets that do not have associated legal AROs. Alliant Energy, IPL and WPL record a regulatory liability for the amounts collected in rates for these future removal costs and reduce the regulatory liability for amounts spent on removal activities.

Electric transmission cost recovery - Refer to Note 1(g) for details of IPL’s and WPL’s electric transmission cost recovery mechanisms. Beginning in March 2018, amounts billed by transmission providers decreased due to the impacts from Federal Tax Reform. During 2018, Alliant Energy, IPL and WPL recorded the benefits associated with lower transmission expense as regulatory liabilities. In May 2018, IPL began providing these benefits back to its retail electric customers utilizing the transmission cost rider. WPL is currently reflecting these benefits for its retail electric customers in 2019 and 2020 through transmission expense amortizations as authorized in its retail electric rate review (2019/2020 Test Period).

Commodity cost recovery - Refer to Note 1(g) for details of IPL’s and WPL’s commodity cost recovery mechanisms.

WPL’s earnings sharing mechanism - Pursuant to PSCW orders, WPL must defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels during the related test periods. The timing of the refund to customers for the majority of these regulatory liabilities will be determined in a future WPL regulatory proceeding.

Utility Rate Reviews -

IPL’s Retail Electric Rate Review (2020 Forward-looking Test Period) - In March 2019, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers based on a 2020 forward-looking Test Period. The key drivers for IPL’s request included recovery of capital projects, including new wind generation. IPL concurrently filed for interim retail electric rates based on 2018 historical data as adjusted for certain known and measurable changes occurring in the first quarter of 2019. An interim retail electric base rate increase of $90 million, on an annual basis, was implemented effective April 1, 2019. In October 2019, IPL reached a settlement agreement with certain intervenor groups for an annual retail electric base rate increase of $127 million. The agreement includes both the recovery of and a return on IPL’s early retired EGUs, and the recovery of IPL’s retired analog electric meters. In addition, as discussed in Note 1(g), the net impact of certain costs and benefits resulting from IPL’s 1,000 MW expansion of wind generation in 2019 and 2020 will be recovered from its retail electric customers through a new renewable energy rider. The settlement agreement also includes IPL providing retail electric billing credits over a 12-month period beginning with final rates, including $27 million of excess deferred tax benefits and $8 million from a partial refund of interim rates implemented in 2019. In January 2020, the IUB issued an order approving the settlement with final rates, which are expected to be effective by the end of the first quarter of 2020.



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IPL’s Retail Gas Rate Review (2020 Forward-looking Test Period) - In March 2019, IPL filed a request with the IUB to increase annual gas base rates for its Iowa retail gas customers based on a 2020 forward-looking Test Period. In October 2019, IPL reached a settlement agreement with intervenor groups for an annual retail gas base rate increase of $12 million. In December 2019, the IUB issued an order approving the settlement with final rates, which were effective January 10, 2020.

IPL’s Retail Electric Rate Review (2016 Test Year) - In April 2017, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers based on a 2016 historical Test Year. An interim retail electric base rate increase of $102 million, on an annual basis, was implemented effective April 13, 2017. In September 2017, IPL reached a partial, non-unanimous settlement agreement with intervenor groups for an annual retail electric base rate increase of $130 million. In February 2018, the IUB issued an order approving the settlement with final rates effective May 1, 2018.

WPL’s Retail Electric and Gas Rate Review (2019/2020 Test Period) - In December 2018, the PSCW issued an order approving WPL’s proposed settlement for its retail electric and gas rate review covering the 2019/2020 Test Period, which was based on a stipulated agreement between WPL and intervenor groups. Under the settlement, WPL retail electric and gas base rates will not change from current levels through the end of 2020.

NOTE 3. PROPERTY, PLANT AND EQUIPMENT

At December 31, details of property, plant and equipment on the balance sheets were as follows (in millions):



	Alliant Energy						IPL						WPL
	2019			2018			2019			2018			2019			2018
Utility:
Electric plant:
Generation in service		$7,625.3			$6,800.6			$4,432.4			$3,610.4			$3,192.9			$3,190.2
Distribution in service	5,783.3			5,452.2			3,190.0			3,023.7			2,593.3			2,428.5
Other in service	456.0			410.8			298.6			260.4			157.4			150.4
Total electric plant	13,864.6			12,663.6			7,921.0			6,894.5			5,943.6			5,769.1
Gas plant in service	1,462.7			1,387.6			801.5			763.1			661.2			624.5
Other plant in service	519.7			513.2			344.7			322.4			175.0			190.8
Accumulated depreciation	(4,601.4		)	(4,314.6		)	(2,498.3		)	(2,294.7		)	(2,103.1		)	(2,019.9		)
Net plant	11,245.6			10,249.8			6,568.9			5,685.3			4,676.7			4,564.5
Leased Sheboygan Falls Energy Facility, net (a)	—			—			—			—			32.3			38.1
Construction work in progress	1,835.0			1,774.8			906.8			1,091.2			928.2			683.6
Other, net	6.1			6.1			5.0			5.0			1.1			1.1
Total utility	13,086.7			12,030.7			7,480.7			6,781.5			5,638.3			5,287.3
Non-utility and other:
Non-utility Generation, net (b)	82.9			86.9			—			—			—			—
Corporate Services and other, net (c)	357.5			344.8			—			—			—			—
Total non-utility and other	440.4			431.7			—			—			—			—
Total property, plant and equipment		$13,527.1			$12,462.4			$7,480.7			$6,781.5			$5,638.3			$5,287.3


(a)	Less accumulated amortization of $88.7 million and $82.8 million for WPL as of December 31, 2019 and 2018, respectively. The Sheboygan Falls Energy Facility is eliminated from WPL upon consolidation and is included in the “Non-utility Generation, net” line within Alliant Energy’s consolidated property, plant and equipment.


(b)	Less accumulated depreciation of $58.5 million and $54.5 million for Alliant Energy as of December 31, 2019 and 2018, respectively.


(c)	Less accumulated depreciation of $172.4 million and $167.5 million for Alliant Energy as of December 31, 2019 and 2018, respectively.

AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. The concurrent credit for the amount of AFUDC capitalized is recorded as “Allowance for funds used during construction” in the income statements. The amount of AFUDC generated by equity and debt components was as follows (in millions):



	Alliant Energy						IPL						WPL
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Equity		$65.5		$51.4		$33.6		$35.2		$28.6		$21.1		$30.3		$22.8		$12.5
Debt	27.2		24.2		16.1		14.2		13.6		10.3		13.0		10.6		5.8
		$92.7		$75.6		$49.7		$49.4		$42.2		$31.4		$43.3		$33.4		$18.3



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Non-utility and Other - The non-utility and other property, plant and equipment recorded on Alliant Energy’s balance sheets include the following:

Non-utility Generation - The Sheboygan Falls Energy Facility was placed into service in 2005 and is depreciated using the straight-line method over a 35-year period.

Corporate Services and Other - Property, plant and equipment related to Corporate Services include a customer billing and information system for IPL and WPL and other computer software, and the corporate headquarters building located in Madison, Wisconsin. The customer billing and information system is amortized using the straight-line method over a 12-year period. The majority of the remaining software is amortized over a 5-year period. Other property, plant and equipment include Transportation assets (a short-line railway in Iowa and a barge terminal on the Mississippi River). All Corporate Services and Other property, plant and equipment are depreciated using the straight-line method over periods ranging from 5 to 30 years.

Transportation Acquisitions - In the first quarter of 2019, Alliant Energy, through its wholly-owned non-utility subsidiaries, completed acquisitions of freight management companies located in Cedar Rapids, Iowa and Stoughton, Wisconsin. These acquisitions were purchased for $21 million, including contingent consideration of $8 million, which was paid in January 2020. The purchase price was largely allocated to intangibles and the remainder was allocated to working capital and property.

NOTE 4. JOINTLY-OWNED ELECTRIC UTILITY PLANT

Under joint ownership agreements with other utilities, IPL and WPL have undivided ownership interests in jointly-owned EGUs. Each of the respective owners is responsible for the financing of its portion of the construction costs. KWh generation and operating expenses are primarily divided between the joint owners on the same basis as ownership. IPL’s and WPL’s shares of expenses from jointly-owned EGUs are included in the corresponding operating expenses (e.g., electric production fuel, other operation and maintenance, etc.) in their income statements. Information relative to IPL’s and WPL’s ownership interest in these jointly-owned EGUs at December 31, 2019 was as follows (dollars in millions):



	Ownership		Electric		Accumulated Provision		Construction
	Interest %		Plant		for Depreciation		Work in Progress
IPL
Ottumwa Unit 1	48.0	%		$571.5		$180.8		$18.8
George Neal Unit 4	25.7	%	191.8		93.5		0.8
George Neal Unit 3	28.0	%	163.7		63.2		0.9
Louisa Unit 1	4.0	%	39.9		24.9		0.2
			966.9		362.4		20.7
WPL
Columbia Units 1-2	53.3	%	777.0		264.7		5.5
FWEC	42.6	%	120.2		43.6		—
West Riverside	91.8	%	—		—		647.5
			897.2		308.3		653.0
Alliant Energy				$1,864.1		$670.7		$673.7

NOTE 5. RECEIVABLES

NOTE 5(a) Accounts Receivable - Details for accounts receivable included on the balance sheets as of December 31 were as follows (in millions):



	Alliant Energy						IPL						WPL
	2019			2018			2019			2018			2019			2018
Customer		$91.6			$91.0			$—			$—			$83.5			$84.8
Unbilled utility revenues	82.1			74.2			—			—			82.1			74.2
Deferred proceeds	187.7			119.4			187.7			119.4			—			—
Other	48.0			76.3			16.3			37.2			31.4			38.5
Allowance for doubtful accounts	(7.3		)	(10.5		)	(1.2		)	(3.1		)	(6.1		)	(7.4		)
		$402.1			$350.4			$202.8			$153.5			$190.9			$190.1

NOTE 5(b) Sales of Accounts Receivable - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. The purchase commitment from the third party to which it sells its receivables expires



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in March 2021. IPL pays a monthly fee to the third party that varies based on interest rates, limits on cash proceeds and cash amounts received from the third party. Deferred proceeds represent IPL’s interest in the receivables sold to the third party. At IPL’s request, deferred proceeds are paid to IPL from collections of receivables, after paying any required expenses incurred by the third party and the collection agent. Corporate Services acts as collection agent for the third party and receives a fee for collection services. The Receivables Agreement can be terminated by the third party if arrears or write-offs exceed certain levels. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. IPL believes that the allowance for doubtful accounts related to its sales of receivables is a reasonable approximation of credit risk of the customers that generated the receivables. Refer to Note 16 for discussion of the fair value of deferred proceeds.

Under the Receivables Agreement, IPL has the right to receive cash proceeds, up to a certain limit, from the third party in exchange for the receivables sold. The limit on cash proceeds fluctuates between $90 million and $110 million. Cash proceeds are used by IPL to meet short-term financing needs, and cannot exceed the current limit or amount of receivables available for sale, whichever is less. As of December 31, 2019, IPL had $83 million of available capacity under its sales of accounts receivable program. IPL’s maximum and average outstanding aggregate cash proceeds (based on daily outstanding balances) related to the sales of accounts receivable program were as follows (in millions):



	Maximum			Average
	2019	2018	2017	2019	2018	2017
Outstanding aggregate cash proceeds	$108.0	$116.0	$112.0	$35.9	$53.4	$62.2

As of December 31, the attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):



	2019	2018
Customer accounts receivable	$124.7	$140.1
Unbilled utility revenues	95.5	97.1
Other receivables	0.9	0.1
Receivables sold to third party	221.1	237.3
Less: cash proceeds	27.0	108.0
Deferred proceeds	194.1	129.3
Less: allowance for doubtful accounts	6.4	9.9
Fair value of deferred proceeds	$187.7	$119.4
Outstanding receivables past due	$26.0	$35.5

Additional attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):



	2019	2018	2017
Collections	$2,192.8	$2,076.7	$1,647.1
Write-offs, net of recoveries	19.2	21.3	17.7

NOTE 6. INVESTMENTS

Unconsolidated Equity Investments - Alliant Energy’s unconsolidated investments accounted for under the equity method of accounting are as follows (in millions):



	Ownership Interest at	Carrying Value at December 31,				Equity (Income) / Loss
	December 31, 2019	2019		2018		2019			2018			2017
ATC Holdings	16%, 20%		$320.1		$293.6		($45.3	)		($38.1	)		($42.4	)
Non-utility wind farm in Oklahoma	50%	105.3		105.1		(5.2		)	(15.6		)	(1.8		)
Other	Various	32.9		22.6		(2.5		)	(0.9		)	(0.6		)
			$458.3		$421.3		($53.0	)		($54.6	)		($44.8	)

ATC Holdings - As of December 31, 2019, Alliant Energy has a 16% ownership interest in ATC and a 20% ownership interest in ATC Holdco LLC, collectively referred to as ATC Holdings. ATC is an independent, for-profit, transmission-only company. ATC Holdco LLC holds Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America.

Non-utility Wind Farm in Oklahoma - The non-utility wind farm located in Oklahoma provides electricity to a third-party under a long-term PPA, and has both cash and tax equity ownership. The equity income recognized in 2018 was primarily related to the impacts of Federal Tax Reform. The liquidation method utilized to recognize Alliant Energy’s share of the wind farm’s earnings includes utilizing the federal income tax rate in effect as of the end of the measurement period. The lower



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federal income tax rate effective as of January 1, 2018 resulted in an acceleration of earnings attributable to Alliant Energy’s interest in the Oklahoma wind farm. This increase in earnings is expected to reverse over time. Alliant Energy does not maintain or operate the wind farm, and provided a parent guarantee of its subsidiary’s indemnification obligations under the operating agreement and PPA. Refer to Note 17(d) for discussion of the guarantee.

NOTE 7. COMMON EQUITY

Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:



	2019		2018		2017
Shares outstanding, January 1	236,063,279		231,348,646		227,673,654
Equity forward agreements	8,358,973		—		—
At-the-market offering programs	—		4,171,013		3,074,931
Shareowner Direct Plan	501,808		576,965		640,723
Equity-based compensation plans	101,478		5,078		5,185
Other	(2,738	)	(38,423	)	(45,847	)
Shares outstanding, December 31	245,022,800		236,063,279		231,348,646

At December 31, 2019, Alliant Energy had a total of 12.1 million shares available for issuance in the aggregate, pursuant to its Amended and Restated OIP, Shareowner Direct Plan and 401(k) Savings Plan.

Equity Forward Agreements - In December 2018, Alliant Energy entered into forward sale agreements with various counterparties in connection with a public offering of 8,358,973 shares of Alliant Energy common stock. In 2019, Alliant Energy settled $366 million under the forward sale agreements by delivering 8,358,973 shares of newly issued Alliant Energy common stock at a weighted average forward sale price of $43.75 per share. Alliant Energy used the net proceeds from the settlements for general corporate purposes.

In November 2019, Alliant Energy entered into forward sale agreements with a counterparty in connection with a public offering of 4,275,127 shares of Alliant Energy common stock. In the forward sale transaction, the counterparty, or its affiliates, borrowed an aggregate of 4,275,127 shares of Alliant Energy common stock from third parties and sold such shares to the related underwriter. Alliant Energy has not yet received any proceeds from this offering and no amounts have been or will be recorded in equity on Alliant Energy’s balance sheets until the forward sale agreements settle. Alliant Energy expects to settle the forward sale agreements prior to December 31, 2020 through physical delivery of shares of common stock in exchange for cash proceeds at the then-applicable forward sale price; however, Alliant Energy may elect cash settlement or net share settlement for all or a portion of the obligations under the forward sale agreements. The initial forward sale price of $52.235 per share, is subject to daily adjustment based on a floating interest rate factor, and will decrease by other fixed amounts specified in the forward sale agreement.

Alliant Energy has concluded that the forward sale agreements meet the derivative scope exception for certain contracts involving an entity’s own equity. Until settlement of the forward sale agreements, Alliant Energy’s EPS dilution resulting from the agreements, if any, is determined using the treasury stock method. Share dilution occurs when the average market price of Alliant Energy stock during the reporting period is higher than the forward sale price as of the end of the reporting period. As of December 31, 2019, 67,689 incremental shares were included in the calculation of diluted EPS related to the securities under the forward sale agreements.

At-the-Market Offering Programs - In 2018 and 2017, Alliant Energy filed prospectus supplements under which it could sell up to $175 million and $125 million of its common stock, respectively, through at-the-market offering programs. In 2018, Alliant Energy issued 4,171,013 shares of common stock through this program and received cash proceeds of $173 million, net of $2 million in commissions and fees. In 2017, Alliant Energy issued 3,074,931 shares of common stock through this program and received cash proceeds of $124 million, net of $1 million in commissions and fees. The 2017 and 2018 at-the-market offering programs have expired.

Shareowner Direct Plan - Alliant Energy satisfies its requirements under the Shareowner Direct Plan (dividend reinvestment and stock purchase plan) by acquiring Alliant Energy common stock through original issue, rather than on the open market.

Comprehensive Income (Loss) - In 2019, 2018 and 2017, Alliant Energy’s other comprehensive income (loss) was ($0.4) million, $2.2 million and ($0.1) million, respectively; therefore, its comprehensive income was substantially equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was substantially equal to its net income attributable to Alliant Energy common shareowners for such periods. In 2019, 2018 and 2017, IPL and WPL had no other comprehensive income; therefore their comprehensive income was equal to their net income, and IPL’s comprehensive income available for common stock was equal to its net income available for common stock, for such periods.



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NOTE 8. PREFERRED STOCK

IPL is authorized to issue up to 16,000,000 shares of cumulative preferred stock in aggregate. Information related to the carrying value of IPL’s cumulative preferred stock at December 31 was as follows:



Series	Liquidation Preference/Stated Value	Shares Authorized	Shares Outstanding	2019		2018
				(in millions)
5.1%	$25	8,000,000	8,000,000		$200.0		$200.0

IPL may, at its option, redeem the 5.1% cumulative preferred stock for cash at a redemption price of $25 per share plus accrued and unpaid dividends up to the redemption date. The current articles of incorporation of IPL contain a provision that grants the holders of its cumulative preferred stock voting rights to elect two members of IPL’s Board of Directors if preferred dividends equal to six or more quarterly dividend requirements (whether or not consecutive) are in arrears. Such voting rights would not provide the holders of IPL’s preferred stock control of the Board of Directors and could not force IPL to redeem its preferred stock.

NOTE 9. DEBT

NOTE 9(a) Short-term Debt - Alliant Energy and its subsidiaries maintain committed bank lines of credit to provide short-term borrowing flexibility and back-stop liquidity for commercial paper outstanding. At December 31, 2019, the short-term borrowing capacity under a single credit facility agreement, which expires in August 2023, totaled $1 billion ($450 million for Alliant Energy at the parent company level, $250 million for IPL and $300 million for WPL). Subject to certain conditions, Alliant Energy (at the parent company level), IPL and WPL may each reallocate and change its sublimit up to $500 million, $400 million and $500 million, respectively, within the $1 billion total commitment. Information regarding commercial paper classified as short-term debt and back-stopped by the credit facility was as follows (dollars in millions):



	Alliant Energy		IPL		WPL
December 31	2019	2018	2019	2018	2019	2018
Commercial paper outstanding	$337.4	$441.2	$—	$50.4	$168.2	$105.5
Commercial paper weighted average interest rates	1.9%	2.8%	N/A	2.8%	1.8%	2.5%
Available credit facility capacity	$662.6	$558.8	$250.0	$199.6	$131.8	$244.5



	Alliant Energy		IPL		WPL
For the year ended	2019	2018	2019	2018	2019	2018
Maximum amount outstanding (based on daily outstanding balances)	$600.6	$446.5	$50.4	$50.4	$195.1	$126.0
Average amount outstanding (based on daily outstanding balances)	$453.5	$221.4	$0.1	$1.5	$92.6	$36.6
Weighted average interest rates	2.5%	2.2%	2.8%	2.3%	2.4%	2.1%

Financial Covenants - The single credit facility agreement contains a financial covenant, which requires Alliant Energy, IPL and WPL to maintain certain debt-to-capital ratios in order to borrow under the credit facility. AEF’s term loan credit agreement contains a financial covenant, which requires Alliant Energy to maintain a certain debt-to-capital ratio in order to borrow under the term loan credit agreement. The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2019 were as follows:



	Alliant Energy	IPL	WPL
Requirement, not to exceed	65%	65%	65%
Actual	55%	48%	48%

The debt component of the capital ratios includes, when applicable, long- and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), finance lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt-to-capital ratios. The equity component of the capital ratios excludes accumulated other comprehensive income (loss).



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NOTE 9(b) Long-Term Debt - Long-term debt, net as of December 31 was as follows (dollars in millions):



	2019									2018
	Alliant Energy			IPL			WPL			Alliant Energy			IPL			WPL
Senior Debentures (a):
3.65%, due 2020		$200.0			$200.0			$—			$200.0			$200.0			$—
3.25%, due 2024	500.0			500.0			—			500.0			500.0			—
3.4%, due 2025	250.0			250.0			—			250.0			250.0			—
5.5%, due 2025	50.0			50.0			—			50.0			50.0			—
4.1%, due 2028	500.0			500.0			—			500.0			500.0			—
3.6%, due 2029 (b)	300.0			300.0			—			—			—			—
6.45%, due 2033	100.0			100.0			—			100.0			100.0			—
6.3%, due 2034	125.0			125.0			—			125.0			125.0			—
6.25%, due 2039	300.0			300.0			—			300.0			300.0			—
4.7%, due 2043	250.0			250.0			—			250.0			250.0			—
3.7%, due 2046	300.0			300.0			—			300.0			300.0			—
3.5%, due 2049 (b)	300.0			300.0			—			—			—			—
	3,175.0			3,175.0			—			2,575.0			2,575.0			—
Debentures (a):
4.6%, due 2020	150.0			—			150.0			150.0			—			150.0
2.25%, due 2022	250.0			—			250.0			250.0			—			250.0
3.05%, due 2027	300.0			—			300.0			300.0			—			300.0
3%, due 2029 (c)	350.0			—			350.0			—			—			—
6.25%, due 2034	100.0			—			100.0			100.0			—			100.0
6.375%, due 2037	300.0			—			300.0			300.0			—			300.0
7.6%, due 2038	250.0			—			250.0			250.0			—			250.0
4.1%, due 2044	250.0			—			250.0			250.0			—			250.0
5% (Retired in 2019)	—			—			—			250.0			—			250.0
	1,950.0			—			1,950.0			1,850.0			—			1,850.0
Other:
AEF term loan credit agreement through April 2020, 2% at December 31, 2019 (with Alliant Energy as guarantor)	300.0			—			—			300.0			—			—
Corporate Services 3.45% senior notes, due 2022 (a)	75.0			—			—			75.0			—			—
AEF 3.75% senior notes, due 2023 (with Alliant Energy as guarantor) (a)	400.0			—			—			400.0			—			—
AEF 4.25% senior notes, due 2028 (with Alliant Energy as guarantor) (a)	300.0			—			—			300.0			—			—
Sheboygan Power, LLC 5.06% senior secured notes, due 2020 to 2024 (secured by the Sheboygan Falls Energy Facility and related assets) (a)	38.2			—			—			44.3			—			—
Other, 1% at December 31, 2019, due 2020 to 2025	2.1			—			—			2.4			—			—
	1,115.3			—			—			1,121.7			—			—
Subtotal	6,240.3			3,175.0			1,950.0			5,546.7			2,575.0			1,850.0
Current maturities	(657.2		)	(200.0		)	(150.0		)	(256.5		)	—			(250.0		)
Unamortized debt issuance costs	(36.9		)	(21.0		)	(11.3		)	(32.1		)	(17.2		)	(9.6		)
Unamortized debt (discount) and premium, net	(13.2		)	(6.7		)	(6.0		)	(11.8		)	(5.5		)	(5.5		)
Long-term debt, net (d)		$5,533.0			$2,947.3			$1,782.7			$5,246.3			$2,552.3			$1,584.9


(a)	Contains optional redemption provisions which, if elected by the issuer at its sole discretion, could require material redemption premium payments by the issuer. The redemption premium payments under these optional redemption provisions are variable and dependent on applicable U.S. Treasury rates at the time of redemption.


(b)	In April 2019, IPL issued $300 million of 3.6% senior debentures due 2029. In September 2019, IPL issued $300 million of 3.5% senior debentures due 2049. The senior debentures were issued as green bonds, and all of the net proceeds were allocated for the construction and development of IPL’s wind projects.


(c)	In June 2019, WPL issued $350 million of 3% debentures due 2029. The net proceeds from the issuance were used by WPL to reduce its outstanding commercial paper and retire its $250 million 5% debentures that matured in July 2019.


(d)	There were no significant sinking fund requirements related to the outstanding long-term debt.



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Five-Year Schedule of Long-term Debt Maturities - At December 31, 2019, long-term debt maturities for 2020 through 2024 were as follows (in millions):



	2020		2021		2022		2023		2024
IPL		$200		$—		$—		$—		$500
WPL	150		—		250		—		—
Corporate Services	—		—		75		—		—
AEF	307		8		8		408		9
Alliant Energy		$657		$8		$333		$408		$509

Fair Value of Long-term Debt - Refer to Note 16 for information on the fair value of long-term debt outstanding.

NOTE 10. LEASES

Operating Leases - Alliant Energy’s, IPL’s and WPL’s operating leases primarily include leases of space on telecommunication towers and leases of property. Operating lease details are as follows (dollars in millions):



	December 31, 2019
	Alliant Energy			IPL			WPL
Property, plant and equipment, net		$16			$10			$6
Other current liabilities		$2			$1			$1
Other liabilities	14			9			5
Total operating lease liabilities		$16			$10			$6
Weighted average remaining lease term	11 years			12 years			10 years
Weighted average discount rate	4		%	4		%	4		%

	2019
	Alliant Energy			IPL			WPL
Operating lease cost		$2			$1			$1

Finance Lease - WPL is currently leasing the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business through 2025, the initial lease term. WPL is responsible for the operation of the EGU and has exclusive rights to its output. This finance lease contains two lease renewal periods, which are not included in the finance lease obligation, as well as an option to purchase the facility at the end of the initial lease term. WPL’s finance lease details are as follows (dollars in millions):



	December 31, 2019
Property, plant and equipment, net		$32
Other current liabilities		$9
Finance lease obligations - Sheboygan Falls Energy Facility	51
Total finance lease liabilities		$60
Remaining lease term	5 years
Discount rate	11		%

	2019
Depreciation expense		$6
Interest expense	7
Total finance lease expense		$13



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Expected Maturities - As of December 31, 2019, expected maturities of lease liabilities were as follows (in millions):



	2020		2021		2022		2023		2024		Thereafter		Total		Less: amount representing interest		Present value of minimum lease payments
Operating Leases:
Alliant Energy		$2		$2		$2		$2		$2		$10		$20		$4		$16
IPL	1		1		1		1		1		7		12		2		10
WPL	1		1		1		1		1		3		8		2		6
WPL’s Finance Lease:
Sheboygan Falls Energy Facility	15		15		15		15		15		5		80		20		60

Prior period amounts have not been restated to reflect the adoption of the new lease accounting standard and continue to be reported under the accounting standards in effect for those periods. As of December 31, 2018, future minimum operating (excluding contingent rentals) and capital lease payments were as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum capital lease payments
Operating Leases:
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6
WPL’s Capital Lease:
Sheboygan Falls Energy Facility		$15		$15		$15		$15		$15		$19		$94		$26		$68

NOTE 11. REVENUES

Revenues from Alliant Energy’s, IPL’s and WPL’s utility businesses are primarily from electric and gas sales provided to customers based on approved tariffs or specific contracts with customers. IPL’s and WPL’s primary performance obligations under such arrangements are to deliver electricity and gas, and their customers simultaneously receive and consume the electricity and gas. For such arrangements, revenues are recognized equivalent to the value of the electricity or gas supplied during each period, including amounts billed during each period and changes in amounts estimated to be billed at the end of each period. IPL and WPL apply the right to invoice method to measure progress towards completing performance obligations to transfer electricity and gas to their customers.

IPL provides retail electric and gas service to customers in Iowa, and WPL provides retail and wholesale electric and retail gas service to customers in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, as well as steam from its Prairie Creek Generating Station to high-pressure steam customers in Iowa.

IPL’s and WPL’s retail electric and gas revenues include sales to residential, commercial and industrial customers. IPL’s and WPL’s retail electric and gas customer prices are based on IPL’s and WPL’s cost of service and are determined through general rate review proceedings and various tariff filings with the IUB and PSCW, respectively. Such tariff-based services provide electricity or gas to customers without a defined contractual term.

IPL and WPL have wholesale electric market-based rate authority from FERC allowing them to participate in wholesale energy markets (e.g. MISO) and transact directly with third parties. This authority from FERC allows sales of electricity referred to as bulk power sales based on current market values. FERC also allows IPL and WPL to enter into power supply agreements with municipalities and rural electric cooperatives with defined contractual terms, which include standard pricing mechanisms that are detailed in current tariffs accepted by FERC through wholesale rate review proceedings.

Revenues from Alliant Energy’s non-utility business customers are primarily from its Transportation business, which includes a short-line railway that provides freight service; a barge terminal and hauling services on the Mississippi River; customized supply chain solution capabilities; freight and logistics brokering services; and other transfer and storage services.



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Disaggregation of revenues from contracts with customers, which correlates to revenues for each reportable segment, was as follows (in millions):



	Alliant Energy						IPL						WPL
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Electric Utility:
Retail - residential		$1,092.4		$1,063.4		$1,006.2		$601.5		$590.6		$535.6		$490.9		$472.8		$470.6
Retail - commercial	769.7		735.6		710.3		510.3		486.8		452.7		259.4		248.8		257.6
Retail - industrial	889.1		888.8		853.1		503.9		500.8		459.7		385.2		388.0		393.4
Wholesale	176.4		188.4		238.4		63.5		71.2		95.5		112.9		117.2		142.9
Bulk power and other	136.0		124.1		86.7		102.0		81.7		55.4		34.0		42.4		31.3
Total Electric Utility	3,063.6		3,000.3		2,894.7		1,781.2		1,731.1		1,598.9		1,282.4		1,269.2		1,295.8
Gas Utility:
Retail - residential	259.4		254.4		224.7		149.3		152.3		123.2		110.1		102.1		101.5
Retail - commercial	133.0		133.0		123.2		74.9		75.9		67.9		58.1		57.1		55.3
Retail - industrial	16.0		14.9		16.7		11.7		10.2		11.1		4.3		4.7		5.6
Transportation/other	46.8		44.3		36.3		28.3		27.8		23.8		18.5		16.5		12.5
Total Gas Utility	455.2		446.6		400.9		264.2		266.2		226.0		191.0		180.4		174.9
Other Utility:
Steam	37.2		35.2		34.6		37.2		35.2		34.6		—		—		—
Other utility	9.3		12.8		12.9		7.0		9.8		10.8		2.3		3.0		2.1
Total Other Utility	46.5		48.0		47.5		44.2		45.0		45.4		2.3		3.0		2.1
Non-Utility and Other:
Transportation and other	82.4		39.6		39.1		—		—		—		—		—		—
Total Non-Utility and Other	82.4		39.6		39.1		—		—		—		—		—		—
Total revenues		$3,647.7		$3,534.5		$3,382.2		$2,089.6		$2,042.3		$1,870.3		$1,475.7		$1,452.6		$1,472.8

NOTE 12. INCOME TAXES

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):



	Alliant Energy									IPL									WPL
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Current tax expense (benefit):
Federal		($6.6	)		($1.0	)		($41.0	)		($11.0	)		$14.9			($27.9	)		$12.0			($9.2	)		$5.5
State	24.2			(5.1		)	8.5			24.3			(7.1		)	1.6			13.7			(4.4		)	2.5
IPL’s tax benefit riders	(4.5		)	(13.2		)	(40.4		)	(4.5		)	(13.2		)	(40.4		)	—			—			—
Deferred tax expense (benefit):
Federal	69.7			67.9			159.5			26.4			9.5			72.5			30.7			43.8			55.0
State	41.4			29.8			12.3			30.9			7.3			(2.2		)	6.3			22.1			16.6
Production tax credits	(54.7		)	(29.5		)	(31.1		)	(41.8		)	(14.0		)	(14.1		)	(12.8		)	(15.5		)	(17.0		)
Investment tax credits	(0.8		)	(1.2		)	(1.1		)	(0.2		)	(0.6		)	(0.4		)	(0.6		)	(0.6		)	(0.7		)
		$68.7			$47.7			$66.7			$24.1			($3.2	)		($10.9	)		$49.3			$36.2			$61.9

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.



	Alliant Energy						IPL						WPL
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Statutory federal income tax rate	21.0	%	21.0	%	35.0	%	21.0	%	21.0	%	35.0	%	21.0	%	21.0	%	35.0	%
State income taxes, net of federal benefits	6.8		7.0		5.5		8.5		7.7		6.5		6.2		6.2		5.1
Production tax credits	(8.6	)	(5.2	)	(6.1	)	(13.1	)	(5.2	)	(6.7	)	(4.5	)	(6.4	)	(7.1	)
Effect of rate-making on property-related differences	(6.1	)	(7.6	)	(8.5	)	(9.8	)	(14.0	)	(19.1	)	(2.7	)	(2.3	)	(1.7	)
Amortization of excess deferred taxes	(1.0	)	(0.3	)	(0.1	)	(0.3	)	—		(0.1	)	(1.8	)	(0.2	)	(0.1	)
IPL’s tax benefit riders	(0.7	)	(2.3	)	(7.6	)	(1.4	)	(4.9	)	(18.7	)	—		—		—
Adjustment for prior period taxes	0.6		(2.3	)	(1.5	)	3.1		(4.8	)	(3.4	)	(0.3	)	(0.2	)	—
Federal Tax Reform adjustments	—		(1.0	)	(3.4	)	—		(0.4	)	1.7		—		(2.3	)	(5.8	)
Other items, net	(1.2	)	(0.9	)	(0.8	)	(0.4	)	(0.6	)	(0.2	)	(0.4	)	(1.0	)	(0.5	)
Overall income tax rate	10.8	%	8.4	%	12.5	%	7.6	%	(1.2	%)	(5.0	%)	17.5	%	14.8	%	24.9	%



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Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):



	Alliant Energy						IPL						WPL
	2019			2018			2019			2018			2019			2018
Deferred tax liabilities:
Property		$2,021.5			$1,975.5			$1,183.5			$1,158.4			$770.0			$735.2
ATC Holdings	110.8			102.4			—			—			—			—
Other	85.1			80.5			76.5			69.4			32.1			34.4
Total deferred tax liabilities	2,217.4			2,158.4			1,260.0			1,227.8			802.1			769.6
Deferred tax assets:
Federal credit carryforwards	355.4			299.1			175.0			133.2			160.3			147.4
Net operating losses carryforwards - federal	60.5			158.6			56.3			114.1			0.5			26.4
Net operating losses carryforwards - state	36.6			47.0			0.6			0.9			0.1			0.5
Other	60.5			59.8			20.6			22.8			15.8			14.1
Subtotal deferred tax assets	513.0			564.5			252.5			271.0			176.7			188.4
Valuation allowances	(9.6		)	(9.2		)	(0.5		)	(0.5		)	(0.8		)	(0.8		)
Total deferred tax assets	503.4			555.3			252.0			270.5			175.9			187.6
Total deferred tax liabilities, net		$1,714.0			$1,603.1			$1,008.0			$957.3			$626.2			$582.0

Carryforwards - At December 31, 2019, carryforwards and expiration dates were estimated as follows (in millions):



	Range of Expiration Dates	Alliant Energy		IPL		WPL
Federal net operating losses	2037		$297		$276		$2
State net operating losses	2020-2039	615		9		2
Federal tax credits	2022-2039	355		175		160

Valuation Allowances - Due to the anticipated future reductions in revenues from utility customers due to Federal Tax Reform, Alliant Energy expects its federal net operating losses carryforwards will not be fully utilized until 2024. Because taxable income must be reduced by federal net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 and 2003 vintage federal credit carryforwards prior to their expiration in 2022 and 2023, respectively. As a result, Alliant Energy established valuation allowances for the 2002 and 2003 vintage federal credit carryforwards in 2017 that remain as of December 31, 2019.

Uncertain Tax Positions - At December 31, 2019, 2018 and 2017, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2019, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:



Consolidated federal income tax returns (a)	2016	-	2018
Consolidated Iowa income tax returns (b)	2016	-	2018
Wisconsin combined tax returns (c)	2015	-	2018


(a)	The 2016 and 2017 federal tax returns are effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.


(b)	The statute of limitations for these Iowa tax returns expires three years from each filing date.


(c)	The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

Federal Tax Reform Adjustments - In December 2017, Federal Tax Reform was enacted, which had a material impact on Alliant Energy’s, IPL’s and WPL’s 2017 financial statements since changes in tax laws must be recognized in the period in which the law is enacted. The most significant provision of Federal Tax Reform that impacts Alliant Energy, IPL and WPL was the reduction in the federal corporate tax rate from 35% to 21%. As a result of Federal Tax Reform, at December 31, 2017, Alliant Energy’s, IPL’s and WPL’s regulated utility operations recorded the net impacts from re-measuring deferred tax assets and liabilities as a change in regulatory liabilities or regulatory assets. Alliant Energy’s, IPL’s and WPL’s non-utility



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operations recorded the net change in deferred tax assets and liabilities to “Income tax expense (benefit)” in their respective income statement or as an increase to “Other liabilities” or decrease in “ATC Holdings” on Alliant Energy’s balance sheet. As a result of Federal Tax Reform, Alliant Energy, IPL and WPL recorded tax expense (benefits) in their 2017 income statements of ($18.1) million, $3.8 million, and ($14.5) million, respectively.

In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As a result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $5.6 million, $1.1 million and $5.5 million, respectively, in 2018.

Iowa Tax Reform - In May 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021 and the elimination of the deduction for federal income taxes, effective January 1, 2022.

NOTE 13. BENEFIT PLANS

NOTE 13(a) Pension and Other Postretirement Benefits Plans - Retirement benefits are provided to substantially all employees through various qualified and non-qualified non-contributory defined benefit pension plans (currently closed to new hires), and/or through defined contribution plans (including 401(k) savings plans). Benefits of the non-contributory defined benefit pension plans are based on the plan participant’s years of service, age and compensation. Benefits of the defined contribution plans are based on the plan participant’s years of service, age, compensation and contributions. Certain defined benefit postretirement health care and life benefits are provided to eligible retirees. In general, the retiree health care plans consist of fixed benefit subsidy structures and the retiree life insurance plans are non-contributory.

IPL and WPL account for their participation in Alliant Energy and Corporate Services sponsored plans as multiple-employer plans. For IPL and WPL, amounts below represent the amounts for their plan participants covered under plans they sponsor, as well as amounts directly assigned to them related to certain participants in the Alliant Energy and Corporate Services sponsored plans.

Assumptions - The assumptions for defined benefit pension and OPEB plans at the measurement date of December 31 were as follows:



	Defined Benefit Pension Plans												OPEB Plans
Alliant Energy	2019				2018				2017				2019	2018	2017
Discount rate for benefit obligations	3.48%				4.34%				3.66%				3.40%	4.24%	3.53%
Discount rate for net periodic cost	4.34%				3.66%				4.19%				4.24%	3.53%	3.98%
Expected rate of return on plan assets	7.60%				7.60%				7.60%				5.44%	5.44%	5.80%
Interest crediting rate for Alliant Energy Cash Balance Pension Plan	5.52%				5.04%				4.64%				N/A	N/A	N/A
Rate of compensation increase	3.65	%	-	4.50%	3.65	%	-	4.50%	3.65	%	-	4.50%	N/A	N/A	N/A



	Qualified Defined Benefit Pension Plan			OPEB Plans
IPL	2019	2018	2017	2019	2018	2017
Discount rate for benefit obligations	3.51%	4.35%	3.68%	3.39%	4.23%	3.51%
Discount rate for net periodic cost	4.35%	3.68%	4.22%	4.23%	3.51%	3.95%
Expected rate of return on plan assets	7.60%	7.60%	7.60%	5.60%	5.60%	6.20%
Rate of compensation increase	3.65%	3.65%	3.65%	N/A	N/A	N/A



	Qualified Defined Benefit Pension Plan			OPEB Plans
WPL	2019	2018	2017	2019	2018	2017
Discount rate for benefit obligations	3.50%	4.35%	3.69%	3.39%	4.23%	3.51%
Discount rate for net periodic cost	4.35%	3.69%	4.23%	4.23%	3.51%	3.96%
Expected rate of return on plan assets	7.60%	7.60%	7.60%	3.81%	3.84%	3.50%
Rate of compensation increase	3.65%	3.65%	3.65%	N/A	N/A	N/A

Expected rate of return on plan assets - The expected rate of return on plan assets is based on projected asset class returns using target allocations. A forward-looking building blocks approach is used, and historical returns, survey information and capital market information are analyzed to support the expected rate of return on plan assets assumption. Refer to “Investment Strategy for Plan Assets” below for additional information related to investment strategy and mix of assets for the pension and OPEB plans.



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Life Expectancy - The life expectancy assumption is used in determining the benefit obligation and net periodic benefit cost for defined benefit pension and OPEB plans. This assumption utilizes base mortality tables that were released in 2019 by the Society of Actuaries.

Net Periodic Benefit Costs - The components of net periodic benefit costs for sponsored defined benefit pension and OPEB plans are included below (in millions). The service cost component of net periodic benefit costs is included in “Other operation and maintenance” expenses in the income statements and all other components of net periodic benefit costs are included in “Other (income) and deductions” in the income statements.



Alliant Energy	Defined Benefit Pension Plans												OPEB Plans
2019				2018				2017				2019				2018				2017
Service cost		$9.7				$12.1				$12.5				$3.3				$4.2				$5.0
Interest cost	49.8				46.8				51.0				8.5				7.7				8.6
Expected return on plan assets (a)	(60.1		)		(69.7		)		(65.5		)		(5.0		)		(6.0		)		(6.1		)
Amortization of prior service credit (b)	(0.7		)		(0.7		)		(0.4		)		(0.2		)		(0.2		)		(0.2		)
Amortization of actuarial loss (c)	36.4				35.2				37.6				3.3				3.4				3.8
Settlement losses (d)	—				—				0.9				—				—				—
		$35.1				$23.7				$36.1				$9.9				$9.1				$11.1



IPL	Defined Benefit Pension Plans												OPEB Plans
2019				2018				2017				2019				2018				2017
Service cost		$6.0				$7.4				$7.3				$1.3				$1.7				$2.1
Interest cost	22.7				21.4				23.5				3.4				3.1				3.5
Expected return on plan assets (a)	(28.1		)		(32.6		)		(30.8		)		(3.6		)		(4.4		)		(4.3		)
Amortization of prior service credit (b)	(0.2		)		(0.2		)		(0.2		)		—				—				—
Amortization of actuarial loss (c)	15.7				14.9				16.1				1.5				1.3				2.0
		$16.1				$10.9				$15.9				$2.6				$1.7				$3.3



WPL	Defined Benefit Pension Plans												OPEB Plans
2019				2018				2017				2019				2018				2017
Service cost		$3.5				$4.4				$4.9				$1.3				$1.6				$1.9
Interest cost	21.5				20.2				21.8				3.3				3.1				3.4
Expected return on plan assets (a)	(26.2		)		(30.4		)		(28.5		)		(0.6		)		(0.6		)		(0.8		)
Amortization of prior service cost (credit) (b)	(0.2		)		(0.1		)		0.1				(0.2		)		(0.2		)		(0.2		)
Amortization of actuarial loss (c)	17.6				17.2				18.5				1.6				2.0				1.6
		$16.2				$11.3				$16.8				$5.4				$5.9				$5.9


(a)	The expected return on plan assets is based on the expected rate of return on plan assets and the fair value approach to the market-related value of plan assets.


(b)	Unrecognized prior service costs (credits) for the OPEB plans are amortized over the average future service period to full eligibility of the participants of each plan.


(c)	Unrecognized net actuarial gains or losses in excess of 10% of the greater of the plans’ benefit obligations or assets are amortized over the average future service lives of plan participants, except for the Alliant Energy Cash Balance Pension Plan where gains or losses outside the 10% threshold are amortized over the time period the participants are expected to receive benefits.


(d)	Settlement losses related to payments made to retired executives of Alliant Energy.



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Benefit Plan Assets and Obligations - A reconciliation of the funded status of qualified and non-qualified defined benefit pension and OPEB plans to the amounts recognized on the balance sheets at December 31 was as follows (in millions):



	Defined Benefit Pension Plans						OPEB Plans
Alliant Energy	2019			2018			2019			2018
Change in benefit obligation:
Net benefit obligation at January 1		$1,175.0			$1,303.1			$206.1			$222.3
Service cost	9.7			12.1			3.3			4.2
Interest cost	49.8			46.8			8.5			7.7
Plan participants’ contributions	—			—			3.4			3.1
Actuarial (gain) loss	124.6			(96.2		)	13.6			(8.2		)
Gross benefits paid	(79.4		)	(90.8		)	(21.3		)	(23.0		)
Net benefit obligation at December 31	1,279.7			1,175.0			213.6			206.1
Change in plan assets:
Fair value of plan assets at January 1	808.6			950.7			99.1			111.1
Actual return on plan assets	168.1			(57.8		)	14.6			(2.6		)
Employer contributions	33.1			6.5			9.1			10.5
Plan participants’ contributions	—			—			3.4			3.1
Gross benefits paid	(79.4		)	(90.8		)	(21.3		)	(23.0		)
Fair value of plan assets at December 31	930.4			808.6			104.9			99.1
Under funded status at December 31		($349.3	)		($366.4	)		($108.7	)		($107.0	)



	Defined Benefit Pension Plans						OPEB Plans
Alliant Energy	2019			2018			2019			2018
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$9.8			$7.5
Current liabilities	(14.3		)	(2.3		)	(8.1		)	(9.6		)
Pension and other benefit obligations	(335.0		)	(364.1		)	(110.4		)	(104.9		)
Net amounts recognized at December 31		($349.3	)		($366.4	)		($108.7	)		($107.0	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$485.3			$505.2			$45.2			$44.5
Prior service credit	(5.1		)	(5.8		)	(0.9		)	(1.1		)
		$480.2			$499.4			$44.3			$43.4



	Defined Benefit Pension Plans						OPEB Plans
IPL	2019			2018			2019			2018
Change in benefit obligation:
Net benefit obligation at January 1		$533.9			$592.9			$82.5			$89.4
Service cost	6.0			7.4			1.3			1.7
Interest cost	22.7			21.4			3.4			3.1
Plan participants’ contributions	—			—			1.3			1.0
Actuarial (gain) loss	55.9			(44.4		)	5.7			(4.3		)
Gross benefits paid	(37.3		)	(43.4		)	(8.5		)	(8.4		)
Net benefit obligation at December 31	581.2			533.9			85.7			82.5
Change in plan assets:
Fair value of plan assets at January 1	377.8			443.7			66.7			72.9
Actual return on plan assets	78.9			(26.8		)	10.1			(1.4		)
Employer contributions	16.6			4.3			2.3			2.6
Plan participants’ contributions	—			—			1.3			1.0
Gross benefits paid	(37.3		)	(43.4		)	(8.5		)	(8.4		)
Fair value of plan assets at December 31	436.0			377.8			71.9			66.7
Under funded status at December 31		($145.2	)		($156.1	)		($13.8	)		($15.8	)



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	Defined Benefit Pension Plans						OPEB Plans
IPL	2019			2018			2019			2018
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$6.6			$4.7
Current liabilities	(0.5		)	(0.6		)	(1.8		)	(1.9		)
Pension and other benefit obligations	(144.7		)	(155.5		)	(18.6		)	(18.6		)
Net amounts recognized at December 31		($145.2	)		($156.1	)		($13.8	)		($15.8	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$208.2			$218.8			$16.6			$18.8
Prior service credit	(1.7		)	(1.8		)	—			—
		$206.5			$217.0			$16.6			$18.8



	Defined Benefit Pension Plans						OPEB Plans
WPL	2019			2018			2019			2018
Change in benefit obligation:
Net benefit obligation at January 1		$506.6			$559.8			$83.2			$90.4
Service cost	3.5			4.4			1.3			1.6
Interest cost	21.5			20.2			3.3			3.1
Plan participants’ contributions	—			—			1.5			1.4
Actuarial (gain) loss	53.8			(40.0		)	5.0			(2.5		)
Gross benefits paid	(35.3		)	(37.8		)	(9.0		)	(10.8		)
Net benefit obligation at December 31	550.1			506.6			85.3			83.2
Change in plan assets:
Fair value of plan assets at January 1	352.2			415.0			16.7			18.7
Actual return on plan assets	73.4			(25.1		)	1.7			(0.1		)
Employer contributions	15.7			0.1			6.2			7.5
Plan participants’ contributions	—			—			1.5			1.4
Gross benefits paid	(35.3		)	(37.8		)	(9.0		)	(10.8		)
Fair value of plan assets at December 31	406.0			352.2			17.1			16.7
Under funded status at December 31		($144.1	)		($154.4	)		($68.2	)		($66.5	)



	Defined Benefit Pension Plans						OPEB Plans
WPL	2019			2018			2019			2018
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$3.2			$2.8
Current liabilities	(0.1		)	(0.1		)	(6.0		)	(7.4		)
Pension and other benefit obligations	(144.0		)	(154.3		)	(65.4		)	(61.9		)
Net amounts recognized at December 31		($144.1	)		($154.4	)		($68.2	)		($66.5	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$212.0			$223.0			$22.2			$19.9
Prior service credit	(1.2		)	(1.3		)	(0.9		)	(1.1		)
		$210.8			$221.7			$21.3			$18.8

Actuarial losses related to benefit obligations in 2019 for defined benefit pension and OPEB plans were primarily due to decreases in the discount rates and experience losses, partially offset by the impact of the updated base mortality table. Actuarial gains related to benefit obligations in 2018 for defined benefit pension and OPEB plans were primarily due to increases in the discount rates and the impact of the updated mortality table, partially offset by experience losses.



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Included in the following tables are accumulated benefit obligations, aggregate amounts applicable to defined benefit pension and OPEB plans with accumulated benefit obligations in excess of plan assets, as well as defined benefit pension plans with projected benefit obligations in excess of plan assets as of the December 31 measurement date (in millions):



	Defined Benefit Pension Plans				OPEB Plans
Alliant Energy	2019		2018		2019		2018
Accumulated benefit obligations		$1,234.4		$1,139.9		$213.6		$206.1
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	1,234.4		1,139.9		213.6		206.1
Fair value of plan assets	930.4		808.6		104.9		99.1
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	1,279.7		1,175.0		N/A		N/A
Fair value of plan assets	930.4		808.6		N/A		N/A



	Defined Benefit Pension Plans				OPEB Plans
IPL	2019		2018		2019		2018
Accumulated benefit obligations		$557.8		$514.3		$85.7		$82.5
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	557.8		514.3		85.7		82.5
Fair value of plan assets	436.0		377.8		71.9		66.7
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	581.2		533.9		N/A		N/A
Fair value of plan assets	436.0		377.8		N/A		N/A



	Defined Benefit Pension Plans				OPEB Plans
WPL	2019		2018		2019		2018
Accumulated benefit obligations		$535.9		$494.8		$85.3		$83.2
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	535.9		494.8		85.3		83.2
Fair value of plan assets	406.0		352.2		17.1		16.7
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	550.1		506.6		N/A		N/A
Fair value of plan assets	406.0		352.2		N/A		N/A

In addition to the amounts recognized in regulatory assets in the above tables for IPL and WPL, regulatory assets were recognized for amounts associated with Corporate Services employees participating in other Alliant Energy sponsored benefit plans that were allocated to IPL and WPL at December 31 as follows (in millions):



	IPL				WPL
	2019		2018		2019		2018
Regulatory assets		$39.4		$38.2		$29.0		$27.7

Estimated Future Employer Contributions and Benefit Payments - Estimated funding for the qualified and non-qualified defined benefit pension and OPEB plans for 2020 is as follows (in millions):



	Alliant Energy		IPL		WPL
Defined benefit pension plans (a)		$59.8		$19.4		$21.8
OPEB plans	8.1		1.8		6.0

(a)

Alliant Energy sponsors several non-qualified defined benefit pension plans that cover certain current and former key employees of IPL and WPL. Alliant Energy allocates pension costs to IPL and WPL for these plans. In addition, IPL and WPL amounts reflect funding for their non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans.



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Expected benefit payments for the qualified and non-qualified defined benefit plans, which reflect expected future service, as appropriate, are as follows (in millions):



Alliant Energy	2020		2021		2022		2023		2024		2025 - 2029
Defined benefit pension benefits		$86.4		$74.5		$76.6		$77.5		$78.2		$390.2
OPEB	17.7		17.7		17.5		17.1		16.8		76.6
		$104.1		$92.2		$94.1		$94.6		$95.0		$466.8



IPL	2020		2021		2022		2023		2024		2025 - 2029
Defined benefit pension benefits		$35.1		$35.3		$36.6		$37.7		$36.6		$182.5
OPEB	7.2		7.1		7.1		7.0		6.9		30.6
		$42.3		$42.4		$43.7		$44.7		$43.5		$213.1



WPL	2020		2021		2022		2023		2024		2025 - 2029
Defined benefit pension benefits		$32.0		$32.0		$32.1		$32.4		$33.1		$165.2
OPEB	7.3		7.4		7.1		6.8		6.7		30.2
		$39.3		$39.4		$39.2		$39.2		$39.8		$195.4

Investment Strategy for Plan Assets - Investment strategies for defined benefit pension and OPEB plan assets combine preservation of principal and prudent risk-taking to protect the integrity of plan assets, in order to meet the obligations to plan participants while minimizing benefit costs over the long term. Investment risk of plan assets is mitigated through diversification, including U.S. and international equity, fixed income, global asset and risk parity strategies. Global asset and risk parity strategies may include investments in global equity, global debt, commodities and currencies.

Defined Benefit Pension Plan Assets - The asset mix of defined benefit pension plans is governed by allocation targets. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. An overlay management service is also used to help maintain target allocations and meet liquidity needs. The overlay manager is authorized to use derivative financial instruments to facilitate this service. For separately managed accounts, prohibited investments include, but are not limited to, direct ownership of real estate, oil and gas limited partnerships, securities of the managers’ firms or affiliate firms, and Alliant Energy securities.

At December 31, 2019, the current target ranges and actual allocations for the defined benefit pension plan assets were as follows:



	Target Range				Actual
	Allocation				Allocation
Cash and equivalents	0	%	-	5%	5%
Equity securities - U.S.	6	%	-	56%	25%
Equity securities - international	14	%	-	34%	22%
Global asset securities	5	%	-	15%	9%
Risk parity securities	5	%	-	15%	10%
Fixed income securities	20	%	-	40%	29%

Other Postretirement Benefits Plan Assets - OPEB plan assets are comprised of specific assets within certain defined benefit pension plans (401(h) assets) as well as assets held in VEBA trusts. The investment strategy of the Corporate Services 401(h) assets mirrors those of the defined benefit pension plans, which are discussed above. For VEBA trusts with assets greater than $5 million and the WPL 401(h) assets, the mix among asset classes is governed by allocation targets. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. At December 31, 2019, the current target ranges and actual allocations for VEBA trusts with assets greater than $5 million and the WPL 401(h) assets were as follows:



	Target Range				Actual
	Allocation				Allocation
Cash and equivalents	0	%	-	5%	3%
Equity securities - U.S.	0	%	-	46%	25%
Equity securities - international	0	%	-	34%	2%
Fixed income securities	20	%	-	100%	70%



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Fair Value Measurements - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Refer to Note 16 for discussion of levels within the fair value hierarchy. Level 1 items include investments in securities held in registered investment companies, treasury bills and directly held equity securities, which are valued at the closing price reported in the active market in which the securities are traded. Level 2 items include fixed income securities consisting of corporate and government bonds, which are valued at the closing price reported in the active market for similar assets in which the individual securities are traded or based on yields currently available on comparable securities of issuers with similar credit ratings. Certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. These fair value amounts are included below to reconcile the fair value hierarchy to the respective total plan assets.

At December 31, the fair values of qualified and non-qualified defined benefit pension plan assets were as follows (in millions):



	2019									2018
	Fair			Level		Level		Level		Fair			Level		Level		Level
Alliant Energy	Value			1		2		3		Value			1		2		3
Cash and equivalents		$45.7			$3.7		$42.0		$—		$36.4			$3.0		$33.4		$—
Equity securities - U.S.	160.6			160.6		—		—		130.2			130.2		—		—
Equity securities - international	135.9			135.9		—		—		116.0			116.0		—		—
Global asset securities	47.2			47.2		—		—		42.1			42.1		—		—
Fixed income securities	130.7			58.0		72.7		—		127.8			52.5		75.3		—
Total assets in fair value hierarchy	520.1				$405.4		$114.7		$—	452.5				$343.8		$108.7		$—
Assets measured at net asset value	410.1									355.4
Accrued investment income	0.9									1.2
Due to brokers, net (pending trades with brokers)	(0.7		)							(0.5		)
Total pension plan assets		$930.4									$808.6



	2019									2018
	Fair			Level		Level		Level		Fair			Level		Level		Level
IPL	Value			1		2		3		Value			1		2		3
Cash and equivalents		$21.4			$1.7		$19.7		$—		$17.0			$1.4		$15.6		$—
Equity securities - U.S.	75.2			75.2		—		—		60.8			60.8		—		—
Equity securities - international	63.7			63.7		—		—		54.2			54.2		—		—
Global asset securities	22.1			22.1		—		—		19.7			19.7		—		—
Fixed income securities	61.3			27.2		34.1		—		59.7			24.5		35.2		—
Total assets in fair value hierarchy	243.7				$189.9		$53.8		$—	211.4				$160.6		$50.8		$—
Assets measured at net asset value	192.2									166.1
Accrued investment income	0.4									0.6
Due to brokers, net (pending trades with brokers)	(0.3		)							(0.3		)
Total pension plan assets		$436.0									$377.8



	2019									2018
	Fair			Level		Level		Level		Fair			Level		Level		Level
WPL	Value			1		2		3		Value			1		2		3
Cash and equivalents		$19.9			$1.6		$18.3		$—		$15.9			$1.3		$14.6		$—
Equity securities - U.S.	70.1			70.1		—		—		56.7			56.7		—		—
Equity securities - international	59.3			59.3		—		—		50.5			50.5		—		—
Global asset securities	20.6			20.6		—		—		18.4			18.4		—		—
Fixed income securities	57.0			25.3		31.7		—		55.6			22.8		32.8		—
Total assets in fair value hierarchy	226.9				$176.9		$50.0		$—	197.1				$149.7		$47.4		$—
Assets measured at net asset value	179.0									154.8
Accrued investment income	0.4									0.5
Due to brokers, net (pending trades with brokers)	(0.3		)							(0.2		)
Total pension plan assets		$406.0									$352.2



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At December 31, the fair values of OPEB plan assets were as follows (in millions):



	2019								2018
	Fair		Level		Level		Level		Fair		Level		Level		Level
Alliant Energy	Value		1		2		3		Value		1		2		3
Cash and equivalents		$3.4		$3.0		$0.4		$—		$1.4		$1.1		$0.3		$—
Equity securities - U.S.	3.7		3.7		—		—		3.9		3.9		—		—
Equity securities - international	2.8		2.8		—		—		2.9		2.9		—		—
Global asset securities	0.5		0.5		—		—		0.4		0.4		—		—
Fixed income securities	68.5		67.8		0.7		—		68.2		67.5		0.7		—
Total assets in fair value hierarchy	78.9			$77.8		$1.1		$—	76.8			$75.8		$1.0		$—
Assets measured at net asset value	26.0								22.3
Total OPEB plan assets		$104.9								$99.1



	2019								2018
	Fair		Level		Level		Level		Fair		Level		Level		Level
IPL	Value		1		2		3		Value		1		2		3
Cash and equivalents		$1.5		$1.5		$—		$—		$0.7		$0.7		$—		$—
Fixed income securities	48.3		48.3		—		—		47.0		47.0		—		—
Total assets in fair value hierarchy	49.8			$49.8		$—		$—	47.7			$47.7		$—		$—
Assets measured at net asset value	22.1								19.0
Total OPEB plan assets		$71.9								$66.7



	2019								2018
	Fair		Level		Level		Level		Fair		Level		Level		Level
WPL	Value		1		2		3		Value		1		2		3
Cash and equivalents		$0.4		$0.4		$—		$—		$0.1		$0.1		$—		$—
Fixed income securities	16.7		16.7		—		—		16.6		16.6		—		—
Total OPEB plan assets		$17.1		$17.1		$—		$—		$16.7		$16.7		$—		$—

For the various defined benefit pension and OPEB plans, Alliant Energy common stock represented less than 1% of assets directly held in the plans at December 31, 2019 and 2018.

401(k) Savings Plans - A significant number of employees participate in defined contribution retirement plans (401(k) savings plans). Alliant Energy common stock directly held by participants represented 11.5% and 11.5% of total assets in the 401(k) savings plans at December 31, 2019 and 2018, respectively. Costs related to the 401(k) savings plans, which are partially based on the participants’ contributions and include allocated costs associated with Corporate Services employees for IPL and WPL, were as follows (in millions):



	Alliant Energy						IPL						WPL
	2019		2018		2017		2019		2018		2017		2019		2018		2017
401(k) costs		$25.5		$25.1		$24.8		$13.0		$13.0		$12.8		$11.5		$11.2		$11.1

NOTE 13(b) Equity-based Compensation Plans - In 2015, Alliant Energy’s shareowners approved the Amended and Restated OIP, which permits the grant of shares of Alliant Energy common stock, restricted stock, restricted stock units, performance shares, performance units, and other stock-based or cash-based awards to key employees. At December 31, 2019, performance shares and restricted stock units (performance- and time-vesting) were outstanding under the Amended and Restated OIP, and 6.4 million shares of Alliant Energy common stock remained available for grants under the Amended and Restated OIP. Alliant Energy satisfies share payouts related to equity awards under the Amended and Restated OIP through the issuance of new shares of its common stock. Alliant Energy also has the DLIP, which permits the grant of cash-based long-term awards, including performance units, restricted cash awards and restricted units, to certain key employees. At December 31, 2019, performance units and restricted units (performance- and time-vesting) were outstanding under the DLIP, and the amount of nonvested restricted units was not material. There is no limit to the number of grants that can be made under the DLIP and Alliant Energy satisfies all payouts under the DLIP through cash payments. Nonvested awards generally do not have non-forfeitable rights to dividends or dividend equivalents when dividends are paid to common shareowners. A summary of compensation expense, including amounts allocated to IPL and WPL, and the related income tax benefits recognized for share-based compensation awards was as follows (in millions):



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	Alliant Energy						IPL						WPL
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Compensation expense		$26.0		$17.0		$15.1		$14.5		$9.4		$8.3		$10.3		$6.9		$6.4
Income tax benefits	7.3		4.9		6.2		4.2		2.8		3.4		2.8		1.9		2.6

As of December 31, 2019, Alliant Energy’s, IPL’s and WPL’s total unrecognized compensation cost related to share-based compensation awards was $5.4 million, $3.0 million and $2.2 million, respectively, which is expected to be recognized over a weighted average period of between one and two years. Share-based compensation expense is recognized on a straight-line basis over the requisite service periods and is recorded in “Other operation and maintenance” in the income statements. As of December 31, 2019, 343,396 shares were included in the calculation of diluted EPS related to the nonvested equity awards.

Performance Shares - Equity Awards - Payouts of 2019 performance shares under the Amended and Restated OIP are contingent upon achievement over a three-year period of specified performance criteria, which currently is total shareowner return relative to an investor-owned utility peer group. Performance shares granted in 2019 are to be paid out in shares of Alliant Energy common stock and are accounted for as equity awards. The fair value of each performance share granted in 2019 is based on the fair value of the underlying common stock on the grant date and the probability of satisfying the market condition contained in the agreement during a three-year performance period. The actual number of 2019 performance shares that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of shares. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at the grant date. A summary of the 2019 performance shares activity, with amounts representing the target number of awards, was as follows:



	2019
	Performance Shares - Equity		Weighted Average Grant Date Fair Value
Nonvested awards, January 1	—			$—
Granted	91,816		47.23
Forfeited	(17,623	)	46.35
Nonvested awards, December 31	74,193		47.44

Performance Shares and Performance Units - Liability Awards - Payouts of performance shares granted prior to 2019 under the Amended and Restated OIP and performance units under the DLIP to key employees are contingent upon achievement over three-year periods of specified performance criteria, which currently is total shareowner return relative to an investor-owned utility peer group. Performance shares granted prior to 2019 can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Performance units must be paid out in cash. Alliant Energy assumes it will make future payouts of its performance shares granted prior to 2019 and performance units in cash; therefore, these performance shares and performance units are accounted for as liability awards. Compensation expense for these performance shares and performance units is recorded ratably over the performance period based on the fair value of the awards at each reporting period. A summary of these performance shares and performance units activity, with amounts representing the target number of awards, was as follows:



	Performance Shares (granted prior to 2019)						Performance Units (granted prior to 2019)
	2019		2018		2017		2019		2018		2017
Nonvested awards, January 1	203,188		223,511		257,599		57,761		71,737		93,320
Granted	—		74,163		65,350		—		19,840		21,558
Vested	(66,322	)	(90,806	)	(99,438	)	(20,131	)	(31,910	)	(37,395	)
Forfeited	(4,994	)	(3,680	)	—		(3,056	)	(1,906	)	(5,746	)
Nonvested awards, December 31	131,872		203,188		223,511		34,574		57,761		71,737

Fair Value of Awards - The fair value of each performance share and performance unit is based on the closing market price of one share of Alliant Energy common stock at the end of the performance period. The actual payout for performance shares and performance units is dependent upon actual performance and may range from zero to 200% of the target number of awards. At December 31, 2019, the Alliant Energy common stock closing price was $54.72. Additional information related to the fair value of nonvested performance shares and performance units at December 31, 2019, by year of grant, was as follows:



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	Performance Shares (granted prior to 2019)						Performance Units (granted prior to 2019)
	2018 Grant			2017 Grant			2018 Grant			2017 Grant
Nonvested awards at target	68,307			63,565			17,622			16,952
Estimated payout percentage based on performance criteria	118		%	155		%	118		%	155		%
Fair values of each nonvested award		$64.57			$84.82			$64.57			$84.82

Vested Awards - Certain performance shares and performance units vested, resulting in payouts (a combination of cash and common stock for the performance shares and cash only for the performance units) as follows:



	Performance Shares (granted prior to 2019)			Performance Units (granted prior to 2019)
	2019	2018	2017	2019	2018	2017
	2016 Grant	2015 Grant	2014 Grant	2016 Grant	2015 Grant	2014 Grant
Performance awards vested	66,322	90,806	99,438	20,131	31,910	37,395
Percentage of target number of performance awards	142.5%	137.5%	147.5%	142.5%	137.5%	147.5%
Aggregate payout value (in millions)	$4.3	$5.3	$5.6	$1.3	$1.4	$1.5
Payout - cash (in millions)	$3.7	$4.9	$5.1	$1.3	$1.4	$1.5
Payout - common stock shares issued	6,447	5,078	5,185	N/A	N/A	N/A

Restricted Stock Units - Equity Awards - Payouts of 2019 restricted stock units under the Amended and Restated OIP are based on the expiration of a three-year time-vesting period. Restricted stock units granted in 2019 are to be paid out in shares of Alliant Energy common stock and are accounted for as equity awards. The fair value of each restricted stock unit granted in 2019 is based on the closing market price of one share of Alliant Energy common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on the fair value of the awards on the grant date. A summary of the 2019 restricted stock units activity was as follows:



	2019
	Restricted Stock Units - Equity		Weighted Average Grant Date Fair Value
Nonvested units, January 1	—			$—
Granted	105,348		45.98
Forfeited	(16,067	)	45.63
Nonvested units, December 31	89,281		46.04

Restricted Stock Units - Liability Awards - Payouts of restricted stock units granted prior to 2019 under the Amended and Restated OIP are based on the expiration of a three-year time-vesting period. Restricted stock units granted prior to 2019 can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Alliant Energy assumes it will make future payouts of its restricted stock units granted prior to 2019 in cash; therefore, restricted stock units granted prior to 2019 are accounted for as liability awards. The fair value of each restricted stock unit granted prior to 2019 is based on the closing market price of one share of Alliant Energy common stock at the end of the time-vesting period. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at each reporting period. A summary of the restricted stock units granted prior to 2019 activity was as follows:



	2019		2018		2017
Nonvested units, January 1	174,163		113,749		57,736
Granted	—		63,568		56,013
Vested	(56,849	)	—		—
Forfeited	(4,281	)	(3,154	)	—
Nonvested units, December 31	113,033		174,163		113,749

Performance Restricted Stock Units - Equity Awards - Payouts of performance restricted stock units under the Amended and Restated OIP are based upon achievement of certain performance targets during a three-year performance period, which currently includes specified growth of consolidated net income from continuing operations. The actual number of units that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of units. If performance targets are not met during the performance period, these units are forfeited. Performance restricted stock units generally must be paid out in shares and are accounted for as equity awards. The fair value of each performance restricted stock unit is based on the closing market price of one share of Alliant Energy common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on a probability assessment of payouts



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for the awards at each reporting period. A summary of the performance restricted stock units activity, with amounts representing the target number of units, was as follows:



	2019				2018				2017
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Nonvested units, January 1	203,188			$37.23	132,705			$36.50	67,355		$33.96
Granted	91,816		46.10		74,163		38.60		65,350	39.12
Vested	(66,322	)	33.93		—		—		—	—
Forfeited	(22,617	)	44.00		(3,680	)	38.60		—	—
Nonvested units, December 31	206,065		41.50		203,188		37.23		132,705	36.50

NOTE 13(c) Deferred Compensation Plan - Alliant Energy maintains a DCP under which key employees may defer up to 100% of base salary and short-term cash incentive compensation and directors may elect to defer all or part of their retainer and committee fees. Key employees who have made the maximum allowed contribution to the Alliant Energy 401(k) Savings Plan may receive an additional credit to the DCP. Key employees and directors may elect to have their deferrals credited to a company stock account, an interest account, equity accounts or mutual fund accounts based on certain benchmark funds.

Company Stock Account - The DCP does not permit diversification of deferrals credited to the company stock account and all distributions from participants’ company stock accounts are made in the form of shares of Alliant Energy common stock. The deferred compensation obligations for participants’ company stock accounts are recorded in “Additional paid-in capital” and the shares of Alliant Energy common stock held in a rabbi trust to satisfy this obligation are recorded in “Shares in deferred compensation trust” on Alliant Energy’s balance sheets. At December 31, the carrying value of the deferred compensation obligation for the company stock account and the shares in the deferred compensation trust based on the historical value of the shares of Alliant Energy common stock contributed to the rabbi trust, and the fair market value of the shares held in the rabbi trust, were as follows (in millions):



	2019		2018
Carrying value		$10.0		$9.8
Fair market value	20.9		16.2

Interest, Equity and Mutual Fund Accounts - Distributions from participants’ interest, equity and mutual fund accounts are in the form of cash payments. The deferred compensation obligations for participants’ interest, equity and mutual fund accounts are recorded in “Pension and other benefit obligations” on the balance sheets. At December 31, 2019 and 2018, the carrying value of Alliant Energy’s deferred compensation obligations for participants’ interest, equity and mutual fund accounts, which approximates fair market value, was $21.2 million and $21.0 million, respectively.

NOTE 14. ASSET RETIREMENT OBLIGATIONS

Recognized AROs relate to legal obligations for the removal, closure or dismantlement of several assets including, but not limited to, wind farms, ash ponds, active ash landfills, above ground storage tanks and solar generation. Recognized AROs also include legal obligations for the management and final disposition of asbestos and polychlorinated biphenyls. AROs are recorded in “Other current liabilities” and “Other liabilities” on the balance sheets. Refer to Note 2 for information regarding regulatory assets related to AROs. A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):



	Alliant Energy						IPL						WPL
	2019			2018			2019			2018			2019			2018
Balance, January 1		$177.5			$184.5			$118.3			$134.1			$59.2			$50.4
Revisions in estimated cash flows	(5.5		)	(10.1		)	(6.7		)	(10.1		)	1.2			—
Liabilities settled	(8.8		)	(10.4		)	(8.4		)	(9.7		)	(0.4		)	(0.7		)
Liabilities incurred (a)	26.2			7.3			26.2			—			—			7.3
Accretion expense	6.9			6.2			4.5			4.0			2.4			2.2
Balance, December 31		$196.3			$177.5			$133.9			$118.3			$62.4			$59.2


(a)	In 2019, Alliant Energy and IPL recognized additional AROs related to IPL’s newly constructed Upland Prairie and English Farms wind sites. The increases in AROs resulted in corresponding increases in property, plant and equipment, net on the respective balance sheets.



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NOTE 15. DERIVATIVE INSTRUMENTS

Commodity Derivatives -

Purpose - Derivative instruments are used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:



Risk management purpose	Type of instrument
Mitigate pricing volatility for:
Fuel used to supply natural gas-fired EGUs	Natural gas swap, options and physical forward contracts (IPL and WPL)
Natural gas supplied to retail customers	Natural gas swap, options and physical forward contracts (IPL and WPL)
Fuel used at coal-fired EGUs	Coal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity	Natural gas physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Manage transmission congestion costs	FTRs (IPL and WPL)
Manage rail transportation costs	Diesel fuel swap contracts (WPL)

Notional Amounts - As of December 31, 2019, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):



	FTRs		Natural Gas		Coal		Diesel Fuel
	MWhs	Years	Dths	Years	Tons	Years	Gallons	Years
Alliant Energy	11,671	2020	189,287	2020-2026	6,194	2020-2021	5,040	2020-2021
IPL	5,497	2020	102,758	2020-2026	2,700	2020-2021	—
WPL	6,174	2020	86,529	2020-2026	3,494	2020-2021	5,040	2020-2021

Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):



	Alliant Energy				IPL				WPL
	2019		2018		2019		2018		2019		2018
Current derivative assets		$15.8		$24.6		$12.1		$16.1		$3.7		$8.5
Non-current derivative assets	11.0		3.7		10.2		1.6		0.8		2.1
Current derivative liabilities	19.0		5.6		8.9		3.1		10.1		2.5
Non-current derivative liabilities	18.6		17.7		8.5		8.1		10.1		9.6

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, 2019 and 2018, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, amounts would not be materially different from gross amounts of derivative assets and derivative liabilities at December 31, 2019 and 2018. Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.



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NOTE 16. FAIR VALUE MEASUREMENTS

Valuation Hierarchy - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Level 1 pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 3 pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Valuation Techniques -

Derivative assets and derivative liabilities - Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using auction prices and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash amounts received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on a discounted cash flow methodology using observable data from comparably traded securities with similar credit profiles, and was substantially classified as Level 2. Refer to Note 9(b) for additional information regarding long-term debt.

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):



Alliant Energy	2019										2018
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$26.8		$—		$4.8		$22.0		$26.8		$28.3		$—		$8.9		$19.4		$28.3
Deferred proceeds	187.7		—		—		187.7		187.7		119.4		—		—		119.4		119.4
Liabilities and equity:
Derivatives	37.6		—		36.8		0.8		37.6		23.3		—		16.1		7.2		23.3
Long-term debt (incl. current maturities)	6,190.2		—		6,917.9		2.0		6,919.9		5,502.8		—		5,858.4		2.4		5,860.8



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IPL	2019										2018
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$22.3		$—		$2.8		$19.5		$22.3		$17.7		$—		$4.0		$13.7		$17.7
Deferred proceeds	187.7		—		—		187.7		187.7		119.4		—		—		119.4		119.4
Liabilities and equity:
Derivatives	17.4		—		16.6		0.8		17.4		11.2		—		6.5		4.7		11.2
Long-term debt (incl. current maturities)	3,147.3		—		3,489.1		—		3,489.1		2,552.3		—		2,691.2		—		2,691.2



WPL	2019										2018
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$4.5		$—		$2.0		$2.5		$4.5		$10.6		$—		$4.9		$5.7		$10.6
Liabilities and equity:
Derivatives	20.2		—		20.2		—		20.2		12.1		—		9.6		2.5		12.1
Long-term debt (incl. current maturities)	1,932.7		—		2,268.2		—		2,268.2		1,834.9		—		2,043.7		—		2,043.7

Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2019			2018			2019		2018
Beginning balance, January 1		$12.2			($12.2	)		$119.4		$222.1
Total net gains included in changes in net assets (realized/unrealized)	8.2			9.1			—		—
Transfers out of Level 3 (a)	4.0			16.1			—		—
Purchases	13.8			26.7			—		—
Sales	(0.2		)	(0.5		)	—		—
Settlements (b)	(16.8		)	(27.0		)	68.3		(102.7		)
Ending balance, December 31		$21.2			$12.2			$187.7		$119.4
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at December 31		$11.4			$10.7			$—		$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2019			2018			2019		2018
Beginning balance, January 1		$9.0			($1.4	)		$119.4		$222.1
Total net gains (losses) included in changes in net assets (realized/unrealized)	10.7			(0.5		)	—		—
Transfers out of Level 3 (a)	2.6			11.0			—		—
Purchases	9.5			22.5			—		—
Sales	(0.1		)	(0.4		)	—		—
Settlements (b)	(13.0		)	(22.2		)	68.3		(102.7		)
Ending balance, December 31		$18.7			$9.0			$187.7		$119.4
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at December 31		$12.6			$0.2			$—		$—



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WPL	Commodity Contract Derivative
	Assets and (Liabilities), net
	2019			2018
Beginning balance, January 1		$3.2			($10.8	)
Total net gains (losses) included in changes in net assets (realized/unrealized)	(2.5		)	9.6
Transfers out of Level 3 (a)	1.4			5.1
Purchases	4.3			4.2
Sales	(0.1		)	(0.1		)
Settlements	(3.8		)	(4.8		)
Ending balance, December 31		$2.5			$3.2
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		($1.2	)		$10.5


(a)	Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3.


(b)	Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash amounts received from the receivables sold.

Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets at December 31 as follows (in millions):



	Alliant Energy				IPL				WPL
	Excluding FTRs		FTRs		Excluding FTRs		FTRs		Excluding FTRs		FTRs
2019		$14.6		$6.6		$13.6		$5.1		$1.0		$1.5
2018	3.2		9.0		1.8		7.2		1.4		1.8

NOTE 17. COMMITMENTS AND CONTINGENCIES

NOTE 17(a) Capital Purchase Commitments - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects. IPL’s and WPL’s projects include the expansion of wind generation. At December 31, 2019, Alliant Energy’s, IPL’s and WPL’s minimum future commitments for these projects were $77 million, $60 million and $17 million, respectively.

NOTE 17(b) Other Purchase Commitments - Various commodity supply, transportation and storage contracts help meet obligations to provide electricity and natural gas to utility customers. In addition, there are various purchase commitments associated with other goods and services. At December 31, 2019, the related minimum future commitments were as follows (in millions):



Alliant Energy	2020		2021		2022		2023		2024		Thereafter		Total
Purchased power (a)		$111		$—		$—		$—		$—		$—		$111
Natural gas	257		183		139		109		77		187		952
Coal (b)	75		27		10		10		—		—		122
Other (c)	56		13		11		9		7		12		108
		$499		$223		$160		$128		$84		$199		$1,293



IPL	2020		2021		2022		2023		2024		Thereafter		Total
Purchased power (a)		$110		$—		$—		$—		$—		$—		$110
Natural gas	135		101		77		67		55		89		524
Coal (b)	46		21		10		10		—		—		87
Other (c)	24		4		4		3		1		10		46
		$315		$126		$91		$80		$56		$99		$767



WPL	2020		2021		2022		2023		2024		Thereafter		Total
Purchased power		$1		$—		$—		$—		$—		$—		$1
Natural gas	122		82		62		42		22		98		428
Coal (b)	29		6		—		—		—		—		35
Other (c)	24		1		1		1		1		1		29
		$176		$89		$63		$43		$23		$99		$493



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(a)

Includes payments required by PPAs for capacity rights and minimum quantities of MWhs required to be purchased. As a result of an amendment to shorten the term of the DAEC PPA, Alliant Energy’s and IPL’s amounts include minimum future commitments related to IPL’s purchase of capacity and the resulting energy from DAEC through September 2020, and do not include the September 2020 buyout payment of $110 million.


(b)	Corporate Services has historically entered into system-wide coal contracts on behalf of IPL and WPL that include minimum future commitments. Such commitments were assigned to IPL and WPL based on information available as of December 31, 2019 regarding expected future usage, which is subject to change.


(c)	Includes individual commitments incurred during the normal course of business that exceeded $1 million at December 31, 2019.

NOTE 17(c) Legal Proceedings - Alliant Energy, IPL and WPL are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although unable to predict the outcome of these matters, Alliant Energy, IPL and WPL believe that appropriate reserves have been established and final disposition of these actions will not have a material effect on their financial condition or results of operations.

NOTE 17(d) Guarantees and Indemnifications -

Whiting Petroleum - In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Whiting Petroleum is an independent oil and gas company. Alliant Energy Resources, LLC, as the successor to a predecessor entity that owned Whiting Petroleum, and a wholly-owned subsidiary of AEF, continues to guarantee the partnership obligations of an affiliate of Whiting Petroleum under general partnership agreements in the oil and gas industry, including with respect to the future abandonment of certain platforms off the coast of California and related onshore plant and equipment owned by the partnerships. The guarantees do not include a maximum limit. As of December 31, 2019, the present value of the abandonment obligations is estimated at $39 million. Alliant Energy is not aware of any material liabilities related to these guarantees of which it is probable that Alliant Energy Resources, LLC will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of December 31, 2019 and 2018.

Non-utility Wind Farm in Oklahoma - In 2017, a wholly-owned subsidiary of AEF acquired a cash equity ownership interest in a non-utility wind farm located in Oklahoma. The wind farm provides electricity to a third-party under a long-term PPA. Alliant Energy provided a parent guarantee of its subsidiary’s indemnification obligations under the related operating agreement and PPA. Alliant Energy’s obligations under the operating agreement were $82 million as of December 31, 2019 and will reduce annually until expiring in July 2047. Alliant Energy’s obligations under the PPA are subject to a maximum limit of $17 million and expire in December 2031, subject to potential extension. Alliant Energy is not aware of any material liabilities related to this guarantee that it is probable that it will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of December 31, 2019 and 2018.

IPL’s Minnesota Electric Distribution Assets - IPL provided indemnifications associated with the 2015 sale of its Minnesota electric distribution assets for losses resulting from potential breach of IPL’s representations, warranties and obligations under the sale agreement. Alliant Energy and IPL believe the likelihood of having to make any material cash payments under these indemnifications is remote. IPL has not recorded any material liabilities related to these indemnifications as of December 31, 2019 and 2018. The general terms of the indemnifications provided by IPL included a maximum limit of $17 million and expire in October 2020.

NOTE 17(e) Environmental Matters - Alliant Energy, IPL and WPL are subject to environmental regulations as a result of their current and past operations. These regulations are designed to protect public health and the environment and have resulted in compliance, remediation, containment and monitoring obligations, which are recorded as current and non-current environmental liabilities. Substantially all of the environmental liabilities recorded on the balance sheets relate to MGP sites.

MGP Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. At December 31, 2019, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, which are not discounted, were as follows (in millions). At December 31, 2019, such amounts for WPL were not material.



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	Alliant Energy				IPL
Range of estimated future costs		$14	-	$30		$12	-	$25
Current and non-current environmental liabilities	18				15

IPL Consent Decree - In 2015, the U.S. District Court for the Northern District of Iowa approved a Consent Decree that IPL entered into with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, thereby resolving potential CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa. IPL has completed various requirements under the Consent Decree. IPL’s remaining requirements include fuel switching or retiring Burlington by December 31, 2021 and Prairie Creek Units 1 and 3 by December 31, 2025. Alliant Energy and IPL currently expect to recover material costs incurred by IPL related to compliance with the terms of the Consent Decree from IPL’s electric customers.

Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however future capital investments and/or modifications to EGUs to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters include, among others: Effluent Limitation Guidelines, CCR Rule, and various legislation and EPA regulations to monitor and regulate the emission of GHG, including the CAA.

NOTE 17(f) Credit Risk - IPL provides retail electric and gas services in Iowa and wholesale electric service in Minnesota, Illinois and Iowa. WPL provides retail electric and gas services and wholesale electric service in Wisconsin. The geographic concentration of IPL’s and WPL’s customers did not contribute significantly to overall credit risk exposure. In addition, as a result of a diverse customer base, IPL and WPL did not have any significant credit risk concentration for receivables arising from the sale of electricity or gas services.

Alliant Energy, IPL and WPL are subject to credit risk related to the ability of counterparties to meet their contractual payment obligations or the potential non-performance of counterparties to deliver contracted commodities and other goods or services at the contracted price. Credit policies are maintained to mitigate credit risk. These credit policies include evaluation of the financial condition of certain counterparties, use of credit risk-related contingent provisions in certain agreements that require credit support from counterparties not meeting specific criteria, diversification of counterparties to reduce concentrations of credit risk and the use of standardized agreements that facilitate the netting of cash flows associated with certain counterparties. Based on these credit policies and counterparty diversification, as well as utility cost recovery mechanisms, it is unlikely that counterparty non-performance would have a material effect on financial condition or results of operations. However, there is no assurance that these items will protect against all losses from counterparty non-performance.

Refer to Notes 5(a) and 15 for details of allowances for doubtful accounts and credit risk-related contingent features, respectively.

NOTE 17(g) Collective Bargaining Agreements - At December 31, 2019, employees covered by collective bargaining agreements represented 54%, 62% and 83% of total employees of Alliant Energy, IPL and WPL, respectively. In August 2020, IPL’s collective bargaining agreement with International Brotherhood of Electrical Workers Local 204 (Cedar Rapids) expires, representing 18% and 46% of total employees of Alliant Energy and IPL, respectively.

NOTE 17(h) MISO Transmission Owner Return on Equity Complaints - A group of MISO cooperative and municipal utilities previously filed two complaints with FERC requesting a reduction to the base return on equity used by MISO transmission owners, including ITC and ATC. The first complaint covered the period from November 12, 2013 through February 11, 2015. The second complaint covered the period from February 12, 2015 through May 11, 2016. In 2016, FERC issued an order on the first complaint and established a base return on equity of 10.32%, excluding any incentive adders granted by FERC, effective September 28, 2016. In 2017, IPL and WPL received the refunds for this first complaint period, which were subsequently refunded to their retail and wholesale customers.

In November 2019, FERC issued an order on the previously filed two complaints. The order adjusted the base return on equity to 9.88%, excluding any incentive adders granted by FERC, from the 10.32% previously established in the 2016 FERC order. The 9.88% base return on equity established in the November 2019 order is effective for the first complaint period and the period subsequent to September 28, 2016. Additional refunds for the first complaint period and the period subsequent to September 28, 2016 are currently expected to be issued later in 2020. The November 2019 FERC order also



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dismissed the second complaint, therefore FERC did not direct refunds to be made for that complaint. For the period ending December 31, 2019, Alliant Energy’s share of earnings in ATC Holdings reflects the recent FERC Order including, (1) estimates of the additional reserves for refunds expected for the first complaint period and the period subsequent to September 28, 2016 and (2) reversals of the reserves that were previously established for the second complaint period. As of December 31, 2019, Alliant Energy’s reserves related to both complaints was $5.8 million. Subsequent to the November 2019 FERC order, various rehearing requests were filed, and in January 2020, FERC issued an order providing an open-ended amount of time for FERC to consider these requests. Any changes in FERC’s decision may have an impact on Alliant Energy’s share of ATC’s future earnings.

NOTE 18. SEGMENTS OF BUSINESS

Alliant Energy - Alliant Energy’s principal businesses as of December 31, 2019 are:

•

Utility - includes the operations of IPL and WPL, which primarily serve retail customers in Iowa and Wisconsin. The utility business has three reportable segments: a) utility electric operations; b) utility gas operations; and c) utility other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total Utility.”


•	ATC Holdings, Non-utility, Parent and Other - includes the operations of AEF and its subsidiaries, Corporate Services, the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. AEF is comprised of Alliant Energy’s interest in ATC Holdings, Transportation, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings.

Alliant Energy’s administrative support services are directly charged to the applicable segment where practicable. In all other cases, administrative support services are allocated to the applicable segment based on services agreements. Intersegment revenues were not material to Alliant Energy’s operations and there was no single customer whose revenues were 10% or more of Alliant Energy’s consolidated revenues. All of Alliant Energy’s operations and assets are located in the U.S. Certain financial information relating to Alliant Energy’s business segments, which represent the services provided to its customers, was as follows (in millions):



											ATC Holdings,
	Utility										Non-utility,			Alliant Energy
2019	Electric			Gas		Other		Total			Parent and Other			Consolidated
Revenues		$3,063.6			$455.2		$46.5		$3,565.3			$82.4			$3,647.7
Depreciation and amortization	512.7			46.4		3.2		562.3			4.9			567.2
Operating income	678.9			69.8		1.3		750.0			27.7			777.7
Interest expense								229.1			43.8			272.9
Equity income from unconsolidated investments, net	(1.4		)	—		—		(1.4		)	(51.6		)	(53.0		)
Income tax expense (benefit)								73.4			(4.7		)	68.7
Net income attributable to Alliant Energy common shareowners								517.1			40.1			557.2
Total assets	13,659.0			1,268.5		856.5		15,784.0			916.7			16,700.7
Investments in equity method subsidiaries	9.5			—		—		9.5			448.8			458.3
Construction and acquisition expenditures	1,438.4			99.7		0.3		1,538.4			101.7			1,640.1



											ATC Holdings,
	Utility										Non-utility,			Alliant Energy
2018	Electric			Gas		Other		Total			Parent and Other			Consolidated
Revenues		$3,000.3			$446.6		$48.0		$3,494.9			$39.6			$3,534.5
Depreciation and amortization	457.3			42.0		3.6		502.9			4.0			506.9
Operating income	610.2			53.2		0.3		663.7			30.7			694.4
Interest expense								217.2			29.8			247.0
Equity income from unconsolidated investments, net	(0.9		)	—		—		(0.9		)	(53.7		)	(54.6		)
Income taxes								33.0			14.7			47.7
Net income attributable to Alliant Energy common shareowners								472.1			40.0			512.1
Total assets	12,486.3			1,184.4		893.2		14,563.9			862.1			15,426.0
Investments in equity method subsidiaries	8.1			—		—		8.1			413.2			421.3
Construction and acquisition expenditures	1,421.1			146.8		0.4		1,568.3			65.6			1,633.9



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												ATC Holdings,
	Utility											Non-utility,			Alliant Energy
2017	Electric			Gas		Other			Total			Parent and Other			Consolidated
Revenues		$2,894.7			$400.9		$47.5			$3,343.1			$39.1			$3,382.2
Depreciation and amortization	412.0			38.2		7.7			457.9			3.9			461.8
Operating income (loss)	601.7			47.7		(11.6		)	637.8			33.4			671.2
Interest expense									206.2			9.4			215.6
Equity income from unconsolidated investments, net	(0.7		)	—		—			(0.7		)	(44.1		)	(44.8		)
Income taxes									51.0			15.7			66.7
Net income attributable to Alliant Energy common shareowners									403.4			53.9			457.3
Total assets	11,396.2			1,199.8		766.5			13,362.5			825.3			14,187.8
Investments in equity method subsidiaries	8.3			—		—			8.3			373.1			381.4
Construction and acquisition expenditures	1,154.9			125.2		1.7			1,281.8			185.1			1,466.9

IPL - IPL is a utility primarily serving retail customers in Iowa and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to IPL’s operations and there was no single customer whose revenues were 10% or more of IPL’s consolidated revenues. All of IPL’s operations and assets are located in the U.S. Certain financial information relating to IPL’s business segments, which represent the services provided to its customers, was as follows (in millions):



2019	Electric		Gas		Other		Total
Revenues		$1,781.2		$264.2		$44.2		$2,089.6
Depreciation and amortization	294.9		28.6		3.2		326.7
Operating income	359.7		38.9		4.2		402.8
Interest expense							126.9
Income taxes							24.1
Net income available for common stock							284.1
Total assets	8,074.6		733.8		469.1		9,277.5
Construction and acquisition expenditures	963.4		55.9		0.3		1,019.6



2018	Electric		Gas		Other		Total
Revenues		$1,731.1		$266.2		$45.0		$2,042.3
Depreciation and amortization	254.7		25.2		3.6		283.5
Operating income	318.2		28.3		4.3		350.8
Interest expense							119.4
Income tax benefit							(3.2		)
Net income available for common stock							264.0
Total assets	7,219.9		687.5		504.0		8,411.4
Construction and acquisition expenditures	890.6		99.7		0.4		990.7



2017	Electric		Gas		Other			Total
Revenues		$1,598.9		$226.0		$45.4			$1,870.3
Depreciation and amortization	215.1		22.2		7.7			245.0
Operating income (loss)	287.3		21.7		(4.9		)	304.1
Interest expense								112.4
Income tax benefit								(10.9		)
Net income available for common stock								216.8
Total assets	6,524.4		727.9		353.7			7,606.0
Construction and acquisition expenditures	594.1		80.7		1.2			676.0

WPL - WPL is a utility serving customers in Wisconsin and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to WPL’s operations and there was no single customer whose revenues were 10% or more of WPL’s consolidated revenues. All of WPL’s operations and assets are located in the U.S. Certain financial information relating to WPL’s business segments, which represent the services provided to its customers, was as follows (in millions):



	93



2019	Electric		Gas		Other			Total
Revenues		$1,282.4		$191.0		$2.3			$1,475.7
Depreciation and amortization	217.8		17.8		—			235.6
Operating income (loss)	319.2		30.9		(2.9		)	347.2
Interest expense								102.2
Income taxes								49.3
Net income								233.0
Total assets	5,584.4		534.7		387.4			6,506.5
Construction and acquisition expenditures	475.0		43.8		—			518.8



2018	Electric		Gas		Other			Total
Revenues		$1,269.2		$180.4		$3.0			$1,452.6
Depreciation and amortization	202.6		16.8		—			219.4
Operating income (loss)	292.0		24.9		(4.0		)	312.9
Interest expense								97.8
Income taxes								36.2
Net income								208.1
Total assets	5,266.4		496.9		389.2			6,152.5
Construction and acquisition expenditures	530.5		47.1		—			577.6



2017	Electric		Gas		Other			Total
Revenues		$1,295.8		$174.9		$2.1			$1,472.8
Depreciation and amortization	196.9		16.0		—			212.9
Operating income (loss)	314.4		26.0		(6.7		)	333.7
Interest expense								93.8
Income taxes								61.9
Net income								186.6
Total assets	4,871.8		471.9		412.8			5,756.5
Construction and acquisition expenditures	592.4		44.5		0.5			637.4

NOTE 19. RELATED PARTIES

Service Agreements - Pursuant to service agreements, IPL and WPL receive various administrative and general services from an affiliate, Corporate Services. These services are billed to IPL and WPL at cost based on expenses incurred by Corporate Services for the benefit of IPL and WPL, respectively. These costs consisted primarily of employee compensation and benefits, fees associated with various professional services, depreciation and amortization of property, plant and equipment, and a return on net assets. Corporate Services also acts as agent on behalf of IPL and WPL pursuant to the service agreements. As agent, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO. Corporate Services assigns such sales and purchases among IPL and WPL based on statements received from MISO. The amounts billed for services provided, sales credited and purchases were as follows (in millions):



	IPL						WPL
	2019		2018		2017		2019		2018		2017
Corporate Services billings		$185		$170		$177		$142		$132		$135
Sales credited	68		48		23		7		28		13
Purchases billed	331		358		364		120		81		115

As of December 31, net intercompany payables to Corporate Services were as follows (in millions):



	2019		2018
IPL		$112		$95
WPL	85		71

ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties were as follows (in millions):



	2019		2018		2017
ATC billings to WPL		$109		$106		$105
WPL billings to ATC	13		11		10



	94

As of December 31, 2019 and 2018, WPL owed ATC net amounts of $9 million and $8 million, respectively.

WPL’s Sheboygan Falls Energy Facility Lease - Refer to Note 10 for discussion of WPL’s Sheboygan Falls Energy Facility lease.

NOTE 20. SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)

Alliant Energy - All “per share” references refer to earnings per diluted share. Summation of the individual quarters may not equal annual totals due to rounding.



	2019								2018
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions, except per share data)
Revenues		$987.2		$790.2		$990.2		$880.1		$916.3		$816.1		$928.6		$873.5
Operating income	176.8		149.8		290.2		160.9		165.7		151.2		256.1		121.4
Net income attributable to Alliant Energy common shareowners	125.1		94.6		226.0		111.5		120.9		100.4		205.5		85.3
Earnings per weighted average common share attributable to Alliant Energy common shareowners	0.53		0.40		0.94		0.46		0.52		0.43		0.87		0.36

IPL - Earnings per share data is not disclosed for IPL given Alliant Energy is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.



	2019								2018
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions)
Revenues		$555.1		$441.2		$596.5		$496.8		$525.8		$474.8		$547.6		$494.1
Operating income	73.5		74.5		173.5		81.3		75.6		77.7		143.1		54.4
Net income	55.9		47.5		143.7		47.2		49.3		54.2		129.1		41.6
Net income available for common stock	53.3		45.0		141.1		44.7		46.7		51.7		126.5		39.1

WPL - Earnings per share data is not disclosed for WPL given Alliant Energy is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.



	2019								2018
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions)
Revenues		$415.2		$326.1		$372.1		$362.3		$381.7		$330.8		$370.7		$369.4
Operating income	98.1		67.0		108.3		73.8		84.0		63.4		104.2		61.3
Net income	65.7		42.0		75.5		49.8		54.0		39.8		76.3		38.0

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